Orica Sells Polyester Resins Business
6th July, 1999
Orica Limited announced today it had reached an agreement to sell its Unsaturated Polyester Resins business in Australia to Nuplex Resins (Aust) Pty Ltd. $A13.7 million plus stock at agreed value will be received at settlement.
The sale of the business, which has annual sales of approximately $A20 million, is consistent with Orica's strategy of simplifying its portfolio and focusing on those businesses which will provide superior shareholder returns.
Orica managing director and chief executive officer Mr Philip Weickhardt said: "Although the Polyester Resins business has been a sound performer over the past few years we saw limits in our ability to grow its profit performance without further investment. As Nuplex is the leading unsaturated polyester resin manufacturer in Australasia we believe the business has better prospects under its ownership."
Following the sale Orica will continue to operate the Resins plant at Padstow, NSW, on a toll manufacturing basis for a transitional period of about six months.
Orica Consumer Products general manager Russell King said: "Padstow will remain an important site for Orica Consumer Products as it houses our Selleys business, the NSW distribution centre for our Decorative, Woodcare and Powders businesses together with our Decorative national customer service centre. We will now review an upgrade of the site."
Nuplex Industries Limited, the parent of Nuplex Resins, is a publicly listed company in New Zealand which operates three distinct businesses; Resins, Waste Process and Construction Products. It employs more than 300 people in Australia servicing the fibreglass, paint, adhesive, printing ink, paper and food industries.
The Polyester Resins business, which has been part of the Orica Consumer Products portfolio, manufactures unsaturated polyester resins and gel coats for the Australasian fibre reinforced plastics industry.
The sale is expected to be completed by the end of July.