Japanese co (Shin-Etsu) agrees to buy Simcoa Operations P/L

20/2/96

Resources Development Minister Colin Barnett today confirmed that Shin-Etsu Chemical Company of Japan had reached agreement to purchase Simcoa Operations Pty Ltd.

Simcoa's plant was completed at Kemerton in 1989 and was based on the processing of quartzite mined at Moora.

Mr Barnett welcomed this decision as a substantial vote of confidence in Western Australia's future as a producer of energy-intensive processed mineral products.

Shin-Etsu is the world's major producer of silicon wafers for the electronics industry and also a major player in the silicones industry.

"Shin-Etsu has been buying some silicon metal from Simcoa for a couple of years and has now been encouraged by WA's internationally low energy prices to buy the operation and consolidate its purchases around this source," Mr Barnett said.

"This underlines the beneficial and lasting impact of the energy market deregulation which the State Government has introduced over the past year, as well as the good technical skills our processors have established."

The Minister added that Shin-Etsu was being encouraged to consider upgrading and expanding the present Simcoa operation.

Mr Barnett said that while decisions would hinge on commercial energy prices and other market considerations, there would be good prospects for the present operation to grow in the medium term, with positive economic effects in the South-West in particular.

Silicon metal is used in numerous products, some of which are alloys with elements such as aluminium or iron. Products containing silicon include automobile components, silicon chips, optical fibre coatings, adhesives, sealants, polishes, synthetic rubber and medical devices.

World production of silicon metal is in the order of 700,000 tonnes per annum, with about four per cent of this produced in Australia (WA).

Media contact: Carolyn Vicars 222 9699