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for European Downstream Explosives Business

SSE sign Sale and Purchase Agreement with ORICA

24th August 2016

SSE Holding SA (SSE) the parent company of the Societe Suisse des Explosifs group of Switzerland, Orica Europe and Orica Norway today announced an agreement for SSE to purchase Orica’s downstream explosives business in Germany, Poland, Czech Republic and Slovakia and including the Wurgendorf NG manufacturing plant in Germany.

 

Specifically, the transaction includes the transfer of Orica’s German, Polish, Czech Republic and Slovakian companies and operations to SSE, including the Wurgendorf Site.

 

In addition, the agreement includes specific product supply arrangements. Orica will continue to purchase nitroglycerin from the SSE Wurgendorf plant and SSE will purchase various non-electric, electric and electronic detonators products together with emulsifier and packaged emulsion products produced by Orica.

 

Completion of the agreement is expected in September 2016.

 

SSE Chief Executive Officer Daniel Antille said: “This acquisition is perfectly in line with our long term strategy to be one of the leading actors in Central Europe and clearly represents a strategic step forward for our group by adding around 45 million euro in our sales. We are very proud to get closer to Orica with long term agreements and will focus our energy in the coming months to integrate over 180 new employees in our structure. Finally, we are convinced that such an operation will benefit our customers by offering a stronger network and additional first-in-class products and services.”

 

Orica’s Regional Vice President Europe Richard Brown, said: “Orica is very pleased to have signed the agreement with SSE which will position it as Orica’s strategic channel partner in Germany, Poland, Czech Republic and Slovakia. Orica recognises that SSE is best placed to develop and grow these European regional businesses. Orica looks forward to supporting SSE through the safe and reliable supply of IS, packaged emulsion and emulsifier products and to continue to grow its market presence in Europe”.

Press Release

Brig, 01 July 2016

 

SSE Group Results 2015

  • - Slight decline in turnover and significant increase in earnings
  • - New organisation of the Group with the creation of a holding
  • - First woman to be appointed to the Board of Directors Ms Rebecca Guntern Flückiger

The SSE Group can look back at a very satisfactory year of 2015. Sales reached CHF 85 million, a drop of 4% due to the strong Swiss franc; in the local currency it would have been an increase of 3% compared to the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to CHF 10.5 million, an increase of 42% compared to 2014. Net profit increased to CHF 2.48 million, compared to CHF 1.56 million in 2014. The dividend remained unchanged at CHF 70 per share, i.e. a dividend pay-out of CHF 1.47 million.

The Swiss market showed a good performance in spite of the enormous impact following the abolition of the Euro minimum rate by the Swiss National Bank. The Swiss explosives market experienced a slight decline, although the price pressure intensified. In the chemicals sector the production volume sank, but there are promising projects in the pipeline to be realised in 2017 and 2018. After three difficult years, pyrotechnics can finally present a good result with our Hamberger Swiss Pyrotechnics subsidiary.

In Europe, business activities of the Scandinavian and central European markets have developed in a balanced fashion. Two achievements gave cause for great satisfaction: firstly, the integration phase has been concluded, and secondly the profitability could be increased. All companies of the Group were profitable, with the exception of the Rumanian subsidiary.

The Group's investment program in 2015 amounted to over CHF 4 million, of which CHF 1.5 million was invested in Gamsen. The new phosgenation plant was commissioned at the end of 2015.

Following the acquisitions in 2013, the year of metamorphosis and internationalisation of SSE, the Board of Directors decided to structure the Group in a more adequate way, by giving the Groups a new legal form that would be appropriate for the challenges that management and the Board would face both today and in the near future. SSE has thus separated the industrial activities of Gamsen and the administration of the shareholdings. Furthermore, the Shareholders' Meeting approved an amendment to the Articles of Association, whereby the Société Suisse des Explosifs is changed to the "SSE Holding AG".

At this General Meeting, the shareholders elected a new member to the Board in the person of Ms Rebecca Guntern Flückiger. She is the first woman in our Board of Directors. She was born in Brig and amongst other things, she brings experience in developing strategy for the chemicals sector.

The SSE Group has 350 employees today, of which 100 are employed at the Gamsen location, 20 in the Bernese Oberland, 200 in Central Europe and 30 in Scandinavia.

Additional information may be obtained from: Mr Daniel Antille, Delegate of the Board of Directors +41 27 922 71 11 / +41 79 301 03 77 d.antille@explosif.ch