To Merger its tubing business with Welded Tube Mills of Aust

Document date:  Mon 21 Aug 2000
Published:  Mon 21 Aug 2000 11:28:00
Document No:  126166
Document part:  A
Market Flag:  Y
Classification: 

HILLS INDUSTRIES LIMITED                      2000-08-21  ASX-SIGNAL-G

HOMEX - Adelaide                                                      

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Mr Bob Ling, Chairman of Hills Industries Limited, today announced
the agreement in principle to merge the Hills Industries Limited
Tubing Division with Welded Tube Mills of Australia Pty Limited.

Mr Ling explained that the two businesses were essentially
complementary in that Hills have operated in the small diameter thin
walled section of the tubing market, whereas Welded Tube Mills have
operated principally in the larger structural segment of the market.

At a time when the Australian Steel Industry is facing an era of
change, this merger will create a company that will hold an important
position in the Australian Steel Industry, capable of providing the
widest range of tubular sections for most applications. The
combination of Welded Tube Mills technologies and Hills distribution
capabilities make an ideal fit, Mr Ling said.

The merger will be effected by Hills taking a 50% interest in Welded
Tube Mills of Australia Pty Limited.

Currently Welded Tube Mills is part of the privately owned Pradella
Group in Brisbane.

Mr Ling said that he was delighted to also announce that Silvio
Pradella would be the Managing Director of the company and that David
Simmons would be the Chairman.

FOR FURTHER INFORMATION PLEASE CONTACT: 

Mr David Simmons 
GROUP MANAGING DIRECTOR 
Hills Industries Limited 
Telephone No (08) 8301 3298 
Mobile 0412 66 22 11 
Email djs@hills.com.au

R D Hill-Ling AO 
CHAIRMAN