Korean conglomerate buys WA minerals processing plant

20/10/94

A major Korean conglomerate has bought a Western Australian minerals processing plant and given a boost to the State's economy and to jobs.

The Rockingham plant, which closed in 1992, has been bought and will be recommissioned early next year, Commerce and Trade Minister Hendy Cowan announced today.

The recommissioning of the zirconia plant by its new owner, Hanwha Corporation of Korea, will create 59 new jobs directly and indirectly.

It will produce export material worth $25 million per year and replace a further $3.5 million in imports annually.

The purchase of the plant follows assistance given to the former owner ICI, by Western Australia's Department of Commerce and Trade and Austrade, to find a new owner.

"The zirconia plant will resume its production of high-grade zirconia powders for the ceramics used in communications and automotive devices and the electronics industry," Mr Cowan said.

"In making its decision to buy the plant, Hanwha has assessed export opportunities not considered by the former owner and opportunities which have emerged since the closure two years ago.

"It will expand the operation to produce more zirconium chemicals which will assist import replacement.

"Hanwha is one of Korea's biggest international groups, and this purchase is its first entry into Australia.  Its presence in Western Australia suggests it will be interested in looking at further investment in other industrial sectors."

The company has interests in oil and chemical products, plastics, machine tools, communications terminals, trade, finance, supermarkets and tourism.

Mr Cowan said Hanwha had indicated that it would work to identify further investment opportunities in Western Australia and has proposed an expansion of the existing plant.

"If this expansion proceeds, three more direct jobs will be generated, $3 million in exports will be created as well as $500,000 in import replacements.

Hanwha and ICI signed the contract for the sale of the plant on Wednesday.

Mr Cowan said the operation was originally established by ICI with Government encouragement.  When ICI announced the closure, the then Government insisted the company make every endeavour to sell the plant.

"Recommissioning the plant will result in direct employment for 17 people out of a total of 59 direct and indirect jobs."

Media contact: Will Henwood 222 9595