Wesfarmers Restructures Industrial Divisions with New Division and Appointments

Strategic Insights -

Australian conglomerate Wesfarmers Ltd will restructure its industrial divisions, merging Wesfarmers Energy and Wesfarmers Chemicals and Fertilisers to form a new division, Wesfarmers Chemicals, Energy and Fertilisers. This new division will provide a vertically integrated LPG and LNG offer, combining the company's LPG and LNG businesses, including Kleenheat Gas, EVOL LNG and Wesfarmers LPG. In addition, Coregas will transfer to become a specialist business unit within Wesfarmers Industrial and Safety division. The restructuring is expected to be complete by the end of June, with costs not expected to exceed A$10 million.

Key Takeaways:

  • The new division, Wesfarmers Chemicals, Energy and Fertilisers, will combine Wesfarmers Energy and Wesfarmers Chemicals and Fertilisers to provide a vertically integrated LPG and LNG offer.
  • The company's LPG and LNG businesses, including Kleenheat Gas, EVOL LNG and Wesfarmers LPG, will be merged to provide a comprehensive gas supply solution.
  • Coregas, currently part of the energy division, will transfer to become a specialist business unit within Wesfarmers Industrial and Safety division.
  • Wesfarmers Energy's managing director, Tom O'Leary, will lead the new division, while Ian Hansen, currently managing director of Wesfarmers Chemicals and Fertilisers, will become chief executive of chemicals.
  • The company will focus on chemicals, with the possible expansion of the ammonium nitrate business as a growth platform for the new division.
  • The restructuring appointments take effect immediately, and the company expects cost efficiencies from the changes.

Statistics:

  • The restructuring costs are not expected to exceed A$10 million.
  • The appointments take effect immediately.
  • The restructuring is expected to be complete by the end of June.

Sources:

  • "Wesfarmers to restructure industrial divisions." Asia Pulse, April 20.
  • "Wesfarmers Restructures Industrial Divisions to Form New Division." AAP, April 20.