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Tuesday 08 July 2008

An explosive acquisition

Jessica Darnbrough

Incitec Pivot Limited (IPL) has acquired Dyno Nobel, which will operate as a discrete explosives business within IPL following the implementation of Schemes of Arrangement in June.

The Dyno Nobel brand will be retained along with all products and associated trade names.

Dyno Nobel Asia Pacific’s regional office will remain in Sydney.

“Incitec Pivot recognises the heritage and strength of the Dyno Nobel brand and, in turn, the recognition this brand has with our customers across the globe,” Dyno Nobel Asia Pacific President Steve Dawson said.

According to Dawson, the integration of the business will be seamless.

“We remain focussed on fulfilling our customers’ needs and ensuring our operations remain safe. Our customers can rest assured that the same outstanding team of Dyno Nobel people will continue to work closely with them to deliver the same high quality products and services they’ve come to expect from us over the years,” he said.

According to Dawson, nitrogen based chemical manufacturing forms the basis of explosives and fertilisers and therefore, bringing the two companies together makes good strategic sense. The expanded IPL will be exposed to both the explosives industry during the sustained mining boom and the fertiliser industry’s outlook for continued growth driven by global demand for increased food, feed, fibre and fuel.

“We’re very excited about being part of a company the strength and calibre of Incitec Pivot, particularly with respect to the potential growth opportunities this will bring,” he said.

 

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