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”.