Major expansion of SCM Chemicals a boost for Bunbury area

17/5/96

Resource Development Minister Colin Barnett said the South-West would receive a major boost with news today of a $470 million expansion of SCM Chemicals operations near Bunbury.

Mr Barnett said SCM's international board had given the final go-ahead to expand the company's titanium dioxide pigment plant at Kemerton to more than double its production, making it one of the largest plants of its kind in the world.

The expansion, the basis of talks with the Minister when he visited the company's United States head office last year, will involve building a second plant at the Kemerton Industrial Park.

"The expansion will not only further secure Western Australia's lead in this industry but will also create 500 jobs during the two-year construction program and more than 200 permanent jobs when completed," the Minister said.

He said SCM would expand production of the plant by 111,000 tonnes per annum, increasing the plant's capacity to 197,000 tonnes per annum in early 1999.

"The expansion will give a major boost to the downstream processing of titanium minerals in WA, which is one of the world's largest producers of titanium minerals," Mr Barnett said.

The State already produced four per cent of the world's titanium dioxide pigment.

SCM's proposed expansion from 79,000 tonnes per annum to 190,000 tonnes would increase WA's share of the world market.

Detailed engineering and environmental studies were being finalised by SCM. Construction would begin in early 1997, with plant commissioning in early to mid-1999.

Titanium dioxide pigment is mainly used in paint manufacture and in the paper and plastics industry. Its other uses are for sunscreens, plastics, rubber, printing inks, cosmetics, soap and pharmaceuticals

By downstream processing titanium minerals from ilmenite into synthetic rutile and then into pigment, the value increases from about $100 per tonne for ilmenite, into $500 a tonne for synthetic rutile and then around $2,500 a tonne for pigment, depending on world prices.

Media contact: Carolyn Vicars 222 9699