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M.I.M. Holdings Limited |
Information Release
Friday, 13 December, 2002
PROPOSAL TO CLOSE ZINC SMELTER AT AVONMOUTH
Britannia Zinc Limited, a wholly owned subsidiary of M.I.M. Holdings Limited, is today putting a proposal to the trade unions representing its workforce to close the company's zinc smelter at Avonmouth, UK.
Through the 90-day consultation period, MIM will continue to explore alternatives to plant closure.
MIM Managing Director Vince Gauci said: "The company had been pursuing possible exit strategies for its two European zinc smelters. They have been non-core businesses and have been sustaining cash losses despite operating improvements. Earlier this week we completed the exit of the smelter at Duisburg in Germany."
MIM expects to book losses in the current December half year in the order of A$76 million for the sale of Duisburg and A$114 million for Avonmouth. (Were the closure proposal to be implemented, actual cash costs of closure at Avonmouth would be expected to total in the order of £29 million [A$80 million] of which approximately half would be incurred in the current financial year and the balance in the ensuing three financial years.)
In addition, as advised to the MIM Annual General Meeting in October, the two plants are expected to incur total operating losses after tax of around A$50 million for the current December half year.
For further information:
Collin Myers
General Manager Corporate Affairs
Bus: (61 7) 3833 8285
Mobile: 0419 703 145
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