Omn - Omnia Announces Review Of Unprofitable Phosphoric Acid Plant Release Date: 05/02/2010 11:37:02 Code(s): OMN
OMN - Omnia Announces Review Of Unprofitable Phosphoric Acid Plant
Omnia Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/003680/06)
JSE Code: OMN
OMNIA ANNOUNCES REVIEW OF UNPROFITABLE PHOSPHORIC ACID PLANT
Omnia Fertilizer, a division of the Omnia Group, today announced that it will
start a process to evaluate the possible mothballing of its phosphoric acid
plant located outside of Rustenburg. The aim is to complete the evaluation
by 30 April 2010 which will include engagement with key stakeholders and
The plant, through its 36 year history, has produced phosphate based products,
mainly phosphoric acid, has been a safe disposal facility for waste sulphuric
acid emanating from a number of platinum mines in the vicinity. Omnia Fertilizer
is committed to entering into discussions with its long standing sulphuric acid
suppliers to evaluate possible alternative disposal options.
Omnia Fertilizer is committed to engagement with unions, employees and other
stakeholders during this evaluation process. Omnia Fertilizer estimates that
approximately 160 people may be affected.
Omnia Group MD, Rod Humphris, said, "over the past 5 years, two unprofitable
phosphoric acid plants in South Africa have had to be closed by various
companies. We want to ensure that our evaluation process is absolutely
thorough and comprehensive before we make any decisions. Should it be necessary
to mothball the plant, we want to do it effectively, and with minimal impact on
"Omnia Fertilizer has in fact subsidised the plant for several years in an
attempt to keep it operating due to the fact that there is an abundance of raw
materials in South Africa. The plant is currently in need of reinvestment and a
combination of factors such as the current lack of sulphuric acid, escalating
prices of raw materials and rail transport has impacted the viability of the
"Omnia Fertilizer has the ability to source or alternatively produce any
shortfall in phosphate utilising alternative phosphate technology. If the
plant had to be mothballed, there would be no negative financial impact on the
Omnia Group", added Humphris.
The Group will keep shareholders informed once the evaluation is complete.
5 February 2010
Sponsor: BJM Corporate Finance (Proprietary) Limited
Date: 05/02/2010 11:37:01 Supplied by www.sharenet.co.za
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