Orica to sell Minova
17 May 2021Multinational explosives supplier Orica is to put its subsidiary ground control products manufacturer Minova up for sale following ‘disrupted’ market conditions and lower than expected company earnings.
At US$317m, Minova’s full-year sales revenue for 2020 was 21% lower than for 2019, while its half-year sales to March 2021 were 17% lower than those for March 2020. Yet these figures are an improvement over its performance in the past.
Orica bought UK-based Minova in 2006 for around US$676m, although it is now estimated to be worth just US$70m. As the reason for the sale, Orica cited Minova as being a ‘non-core’ asset of the Group, rather than for any revenue issues. Indeed, Minova has done relatively well despite the Covid-19 disruptions; the trading tensions between Australia and China, particularly the ban on Australian coal entering China; and the decline in the US coal market.
Minova’s products are widely used in general construction, tunnelling and mining. They range from rock bolts, soil nails, ground anchors, micropiles and meshes, to injection, grouting and sprayable resins and grouts.
