Wesfarmers CSBP (a division of Wesfarmers Ltd)

Wesfarmers has around 20 per cent of its assets within its fertilisers/chemicals division (CSBP).

The Chemicals and Fertiliser Division had a 10 per cent return on capital. The Australian (16/02/2002) records the company planning to sell its division unless it achieves an 18 per cent return on capital.

Hardware

Bunnings Building Supplies

BBC Hardware

Hardwarehouse

Bunnings Warehouse Property Trust

WA Salvage

Gas

Kleenheat Gas

LPG

Air Liquide

Coal

WA Coal

Wesfarmers Premier Coal

Bengalla Coal

Curragh Coal Mine

Fertilisers and Chemicals CSBP

Australian Gold Reagents Industrial

Alsafe Blackwoods Motion Industries

Mullings Fasteners

Protector Supply

Rural Services

Wesfarmers Landmark

Wesfarmers Federation Insurance

Forest Products

Sotico

Pressure on Orica. In July 2001 Wesfarmers (owning the successful Bunnings Hardware chain) achieved agreement to purchase Howard Smith which owns the BBC hardware chain. Both hardware stores retail Orica manufactured paints (Dulux, British Paints etc) and so able to apply pressure on Orica to reduce its margins. Orica is already under competitive pressure with ammonium nitrate being forced to sell surplus ammonium nitrate displaced by product from Wesfarmer's Moura plant. Orica has been variously mooted for acquisition by Wesfarmers, but in our opinion, it would be compelled to sell its paint division given its substantial presence in the paint retailing sector through its hardware chains.

The company produces (2000):

Fertilisers (Kwinana WA)	Chemicals (Kwinana WA)	Sodium cyanide (AGR) (75%:25% Coogee) at Kwinana WA	Queensland Nitrates (50% with Dyno) at Moura Qld.
Superphosphate (16% Aust.) 400 000 tpa operating at 70% cap. Using imported phosphate rock and sulphuric acid. Agras (NPK) Capacity 450 000 tpa operating at 90% Imports 350 000 tonnes.	Ammonium nitrate 210 000 capacity operating at 90% capacity. Being doubled to 470,000 by 2007 Ammonia 225 000 operating at 50 % Chloralkali 10 000 capacity	45 000 operating at 75%	Ammonium nitrate 180 ktpa operating at 45% Ammonia 90 000 operating at 40%.

Has interest in Mt Weld with Anaconda Nickel in phosphate rock deposity.

Made a purchase bid for Orica for $12.20 per share in 1997.

This report is NOT indicative of our private client reports.

It has been prepared simply to get you started. Feel free to discuss the preparation of a confidential custom report.

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