Exchem and Orica in joint venture

A DECLINING market for packaged explosives in the UK has pushed up unit manufacturing costs to such an extent that two of the best known names in the business — Exchem and Orica — have decided to combine their manufacturing facilities to reduce growing losses.

"Under the proposals, the joint-venture company will sell a range of packaged slurry explosive products exclusively to Exchem and Orica. Both companies will operate at arm’s length from the joint venture and remain completely independent in all other respects."

"Subject to final approval from the regulatory authorities, the two companies expect the joint manufacturing deal to commence this summer."

"‘This joint venture is the only viable option available to the industry to ensure the availability of these products,’ explained Exchem’s chief executive, Ray Keen."

"‘Safety controls at our ports make it impossible to import packaged slurry explosives economically in the quantities required by the market, so a UK-based solution is essential.’"

"Both Exchem and Orica will each control 50% of the joint-venture company, which will operate the slurry explosives plant at Exchem’s manufacturing site in Alfreton, Derbyshire."