Pacific Dunlop Ld - Disposal, etc

RNS No 7208a
PACIFIC DUNLOP LIMITED
2nd March 1998


PACIFIC DUNLOP RESTRUCTURES CABLES BUSINESS

Pacific Dunlop today announced a major restructing of its Cables Group including
the sale of its communications cable businesses and the closure of its building
wire plant at Geebung in Brisbane.

The communications cables business has been sold to Belden Inc, of the United
States, for $26 million.  Belden has also entered into the conditional agreement
to purchase Pacific Dunlop's 51 per cent interest in Optix Australia Ltd, which
manufactures optical fibre.  This transaction should be finalised in the near
future.

The sale, effective from February 28, 1998 covers the Olex optical fibre cable,
metallic telephone cable and data cable operations of the Pacific Dunlop Cables
Group.

Belden is a major manufacturer of high performance communications products for
world markets.  It plans to use the newly-acquired business to establish an
Australian manufacturing base for Asia-Pacific markets and will continue to use
the existing Tottenham site in Melbourne.

The Managing Director of Pacific Dunlop, Mr Rod Chadwick, said the sale price
comfortably exceeded book value.

"We made the decision to sell the communications cable businesses late last year
as part of a longer term plan to capitalise on the Cables Group's strong market
shares and proprietary technology in the more profitable energy and constrution
markets in Australia and New Zealand over the coming year", Mr Chadwick said.

"The closure of the Geebung plant is part of the same performance improvement
plan.  Geebung's operations will be transferred to our state-of-the-art facility
at Wetherill Park, Sydney, where the cost of production will be significantly
lower.  The Geebung plant is now more than 30 years old and has found it
increasingly difficult to compete.

"Both these moves will leave us with a tighter, more focused and profitable
domestic cables business, addressing a number of the key issues which led to the
Cables Group's severe fall in profit in the first half."

Mr Chadwick said in view of the resultant scaling back of the Cables Group, its
Managing Director, Mr Ian Campbell, had decided to pursue other opportunities
and would be leaving the Company on March 6, 1998.  He will be succeeded by Mr
Andrew Stobart, Group General Manager, Energy.

He also announced the decision of Mr Barry Saunders, Managing Director of
Pacific Distribution, to take early retirement.  An international search is
under way for his successor.

Mr Chadwick said that following an extensive internal and external search, Mr
David Marginson had been appointed General Manager ALH Electrical.  (ALH
Electrical forms part of Pacific Distribution.)  Mr Marginson had held a number
of senior executive positions within Pacific Dunlop, most recently as head of
the Strategic Sourcing program.

"I would like to acknowledge the commitment and contribution of Mr Campbell and
Mr Saunders to the development of both their businesses over a long period", Mr
Chadwick said.

For further information:  John Hine, GM Corporate Affairs, Pacific Dunlop
                          (03) 9270 7140
                          (0412) 254 952

END


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