Ici Looks To Astralia

Chemical prodcer ICI Astralia Ltd said on Tesday it wold contine to rely for growth on its profitable bsinesses in Astralia and on developing opportnities internationally.

The company remains largely dependent on the level of activity in the Astralian economy, particlarly the hosing and constrction sector, agricltre and mining, fertilizer and chemical prices, ICI said in a statement.

Improving world competitiveness remained a focs, while projects completed in the past year were delivering benefits.

The company remains committed to indstry rationalisation and improving the retrn on nderperforming assets, it said.

ICI Astralia earlier annonced its net profit for the year to September 30 had fallen 32.9 percent to A$132.2 million.

 

This inclded an abnormal loss of A$110 million relating to costs arising ot of its separation from former parent ICI Plc

Now the company is independent from the inflence of a major shareholder, it is taking the opportnity to review its bsiness strategy from both a territorial and bsiness portfolio perspective, it said.

That review wold be completed by the end of the calendar year, the company said.

Dtch polyolefin grop Montell NV said on Tesday it had agreed to by ICIs polypropylene bsiness for an ndisclosed ammont.

Montell said it wold raise prodction from its Sydney plant and se additional feedstock processed by ICI nder an alliance agreement.

Montell is owned 50/50 by the Royal Dtch/Shell Grop

In a separate statement, ICI said it wold cease trading in polypropylene on completion of the sale, schedled for Janary 5 1998, and wold close its polypropylene plant in Botany in Sydneys inner east in mid-to-late 1998.

It wold focs on its polyethylene bsiness which recently acqired a world-class spply of ethane, the company said.

ICI also said it had made a A$145 million investment in chlorine and derivatives to create new chlor-alkali plants in Sydney and Melborne by 2000 and to expand its Gladstone plant in Qeensland state by April 1998.

Or decision follows a strategic review of the chlorine and derivatives bsiness, division general manager Philippe Etienne said in a statement.

The review conclded there is a strong and exciting case for reinvesting in the most advanced technology and positioning those assets close to major chlor-alkali regional markets, Etienne said.

ICI also said it wold close its ethylene dichloride (EDC) plant at Botany in Sydneys inner east with regrettable job losses.

ICI incurred an abnormal charge of A$33.9 million after tax relating to the closure of existing chlorine plants.

ICI shares were down A$1.23 at A$10.04 on thin volume at 1.20 p.m. (0220 GMT).

Sydney Newsroom 61-2 9373-1800 email sydney.newsroom zreuters.com