Cheminova to acquire a formulation and filling plant in Australia
Cheminova and Bayer CropScience have signed a letter of intent concerning
Cheminova's acquisition of Bayer CropScience's formulation and filling facility
in the town of Wyong in New South Wales, Australia, roughly 100 kilometres
north of Sydney. Closing of the transaction is expected in the 4th quarter of
2008 following finalisation of the definitive transactional agreements and of
the relevant transitional steps.
Cheminova has since 2005 been represented in Australia through its subsidiary
Ospray, with its main office in Sydney. Ospray will assume management
responsibility for the Wyong facility.
Ospray is involved in sales and distribution of plant protection products but
has hitherto not had its own production facility. With the incorporation of the
Wyong facility, Ospray will henceforth enjoy a competitive advantage when
catering to the large Australian market thanks to the supply reliability and
flexibility as well as cost advantages that an own production facility will
provide Ospray. The Wyong facility will hence contribute to the further
expansion of Ospray's sales and market position.
The Wyong facility has been operated by Bayer CropScience for over 20 years,
during which time Bayer CropScience has made continuous investments in
expansion and upgrading of the facility. As a result hereof, the Wyong facility
is today an efficient and well-organised facility of a high technical and
environmental standard. Roughly 30 full-time employees are employed at the
site.
The facility produces a range of the most common formulation types in demand in
the Australian market and handles a wide range of packaging types and sizes.
One of the plants at the Wyong site is a specific-purpose plant for the
amination and formulation of glyphosate - a product enjoying strong demand in
the Australian market and a key product in Ospray's product range. The Wyong
facility is currently producing for both Bayer CropScience and other customers,
and this will continue to be the case also in future, in addition to the
volumes that the Wyong facility will produce for Ospray.
From 2009 and onward, the Wyong facility will generate stand-alone profits as
well as contribute to a further strengthening of Ospray's sales and earnings.
The parties have agreed not to release further details concerning the
transaction.
AURIGA INDUSTRIES A/S
Ole Steen Andersen
Chairman of the Board of Directors
Bjørn Albinus
President and CEO
Enquiries concerning the company announcement should be addressed to
Cheminova's President and CEO, Kurt Pedersen Kalaund on tel. +45 9690 9690.
