• New production facility being built which produce up to 60 million units of detonator
• Applying for licence to export - reducing cost of sales therfore increasing profits.
• Investments from Dyno.   Just check out Dyno market cap right now and the international market that they penetrated right now. 

The Group?s principal business activity is in the production and sale of commercial explosives products, comprising explosive devices, initiators and detonators, both under its own brand name (?Yinguang?) and those of third parties. It also provides after-sales services to its customers such as technical assistance related to the detonating activities.

The Group?s products are mainly used by the mining, hydroelectric and infrastructure construction industries, for activities such as coal mining, oil exploration, construction of hydroelectric dams, roads and railways, and large construction projects. Its range of products can be broadly categorised as follows

• Explosive devices, such as boosters and tube charges. These devices are used to enhance the power of the explosions.
  
  
• Industrial fuse and initiating explosive devices, such as detonating cords and nonel tubes. These devices are used to initiate the detonation process.
  
  
• Industrial detonators, such as nonel detontators and piston nonel detontators. These devices are mainly used to initiate explosions, either through boosters or applied directly on the explosives.

Product Distribution and Market Segment

The Group sells its products to both domestic and overseas customers.

In the domestic market, its products are distributed mainly through local distributors in major provinces such as Henan, Shanxi and Zhejiang, and in major cities such as Beijing and Shanghai. It also sells directly to end-users such as mining and construction companies.

The US and Australia are the Group?s two largest overseas markets in terms of revenue contribution. For the overseas market, the Group exports its products through export distributors to customers in more than 10 countries, including the US, Australia and South Africa. Its two largest overseas customers are Orica and Beston Chemical. Orica is the world?s largest supplier of explosive products while Beston Chemical is a worldwide supplier of blasting accessories. The Group also sells its products to export distributors in China, who in turn export the products to their overseas customers.

Fabchem largest overeas customer are Orica and Beston Chemical. The following are Orica performance

Orica Delivers Strong Results and Growth in Year of Transition

Orica today announced a Net Profit After Tax and Significant Items for the year ended 30 September 2006 of $539 million, up 159% over the previous year. Excluding individually Significant Items, Net Profit after Tax was $380 million, up 12% on 2005. Sales revenue increased 5% to $5.4 billion.

The board of directors has declared a 48 cents per share final dividend, bringing the total dividend for 2006 to 74 cents per share, an increase of 4% over the 2005 total dividend. The 2006 total dividend is franked at 41%.

Orica?s Managing Director and Chief Executive Officer, Graeme Liebelt, said the results showed the continued strength of Orica?s underlying earnings in a year when Orica?s business portfolio had been significantly re-shaped for the future.

?The record results from Mining Services and Chemical Services, underscore strong trading conditions in their respective markets. We believe these trends will continue as customers in the resources sector strive to increase their volume of output, both from existing and new mines?, Mr Liebelt said.

?This year has seen Orica become the true global leader in Mining Services. We now have operations in 50 countries and sell into twice that many, exposing the company to both geographic and market growth opportunities?, he said.

Earnings from the Consumer Products division were down marginally on the prior year, a pleasing performance in light of softer market conditions.

?Consumer Products has improved its competitive position in 2006 and is well positioned for any recovery in overall market conditions?, Mr Liebelt said.

Chemnet?s earnings were down 26% reflecting a range of factors including difficult trading conditions in the Australian and New Zealand manufacturing sectors and loss of market share. The previously announced restructuring program resulted in cost savings in the second half of $9 million and more are expected in the coming year. 

?In addition to the strength of our core earnings, during 2006 we have laid the foundations for a period of sustained profit improvement through a significant re-shaping of Orica. The divestment of Qenos and Incitec Pivot, the acquisition of the Dyno Nobel businesses and recently the Minova acquisition, position Orica as one of the few businesses based in Australia that can claim to be a true global leader,? Mr Liebelt said.

?The business platforms that now make up the group offer growth potential as well as a less volatile earnings stream,? Mr Liebelt said.

Subject to global economic conditions, group net profit before significant items in 2007, is expected to be higher than that reported in 2006, as we look forward to a full year contribution from the acquired Dyno businesses and recently commissioned ammonium nitrate expansion at Yarwun, in addition to improved earnings across our existing businesses. We also expect a nine month earnings contribution from the recently announced Minova acquisition.

November 13, 2006

·        Contacts:

-          Greg Slade, Investor Relations Manager: (03) 9665 7844 Mob: 0434 603 445

-         John Fetter, Group Manager, Corporate Affairs: (03) 9665 7870 Mob: 0412 311 371