ICI Australia still spending largely

Press, 18 January 1979, Page 17

ICI Australia still spending largely

j Commercial

NZPA Sydney! ICI Australia. Ltd. has committed more than SIOOM more to its capital expansion: programme. Most of that —I about SBOM — will be spent! this year. The biggest items in ICl’s capital outlays this year are the S6OM polypropylene plant! at Botany Bay, and the $36Mi PVC plant at Laverton, Vic-1 toria. Construction on both those projects began last year and they are both due for com-! missioning in 1979. TCl’s annual report shows; that 591.8 M was spent dur-! ing the year to September 30; on fixed assets. This com-! pares with 533.8 M in the pre-’ vious year.

Commitments concerning contracts for capital expenditure on fixed assets as at September 30 totalled $28.4M for external suppliers and contractors, and $79.8M for a subsidiary company. The directors say they are still developing plans for petrochemical expansion. The annual report discloses that the Dulux Australia contribution to profit was halved during the year, from 54.6 M to $2.3M. The paint market showed no growth, and margins were cut in keen competition.

As previously announced

depressed, but there was some improvement towards ithe end of the year. “Trading conditions were I particularly difficult in the I building and agricultural in-i idustries, where strong corn-! (petition was encountered,” Ithe report says. I

[the ICI Australia group profit'; (rose 42.6 per cent to $48.5M.h The New Zealand company;l suffered a marginal earnings! downturn, from S4.BM toh ;$4.7M despite a rise in rev-11 enue from SIO3M to sloBM.i< The directors say the Newj| Zealand economy’ remained'l