Orica Sells Remaining Plastic Films Business
1st March, 2000
Orica Limited announced today that it had sold the last of its wholly owned plastics businesses.
The polyethylene Cast Films business, which manufactures plastic film for disposable diapers, has been sold to a management buy-out company, Stellar Films Group Pty Ltd. The sale price was not disclosed.
The Cast Film business has a turnover of approximately AUD$15 million and is based at Deer Park in Melbourne's west and at Port Klang near Kuala Lumpur, Malaysia.
Stellar Films Group Pty Ltd has been established by members of the current management team of the Orica Cast Film business at Deer Park.
The sale includes the plant and equipment and inventory of the Orica Cast Film business in Deer Park, and all of the shares of Orica Films Asia Sdn Bhd, a subsidiary company based in Malaysia. Under the sale, Stellar Films Group Pty Ltd will lease the land and building currently occupied by the Cast Film business at Deer Park. The sale will be profit neutral to Orica.
It is anticipated that all of the 65 employees based at Deer Park and in Malaysia will transfer to Stellar Films Group.