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ICI EXPLOSIVES ENVIRONMENTAL SIGNS CONVERSION CONTRACT FOR U.S. ARMY AMMUNITION PLANT IN INDIANA

 /REPEATING FOR POINTS NEEDED/
 VALLEY FORGE, Pa., March 4 /PRNewswire/ -- ICI Explosives


Environmental, a unit of the ICI Explosives World Group, announced today that it has signed one of the first "facilities-use" contracts with the U.S. Army. Under the contract, ICI will be the driving force behind converting the Indiana Army Ammunition Plant (INAAP), Charlestown, Ind., for use by commercial businesses. The facilities-use contract establishes the terms and conditions of the conversion process.
 ICI has been the operating contractor at the plant since 1972. With a standard government-owned, contractor-operated (GOCO) contract, ICI has been responsible for plant operation and for providing necessary support services. Over the years, the 11,000-acre, 1,400-building facility has contained operations for loading propellant charges and manufacturing charge bags, single base smokeless propellant and black powder.
 The facilities-use contract is aimed at bringing substantial new activities and employment to the facility, primarily through the conversion from a military base to a site for a potentially wide range of commercial manufacturing and other businesses.
 ICI Explosives Environmental, the ICI unit that has strategic overview for the INAAP and another GOCO contract, will become a type of landlord at the facility. The contract will allow ICI to:
 -- Implement an expanded vision for the facility for the next 20 to 30 years.
 -- Develop broader commercial uses for the facility that could lead to significant economic development and employment for the local area.
 -- Encourage other businesses to use the facilities for commercial operations.
 "ICI believes INAAP could become a national model for the process of converting Defense facilities to commercial use," said Charles (Sid) Saunders, ICI Explosives Environmental Vice President, Government Operations. "This facilities-use contract benefits the U.S. government, the local economy and ICI," Saunders said.
 "The Army lowers its cost to manage the facility, while maintaining mobilization readiness," Saunders continued. "The local economy benefits by businesses of all types gaining access to cost-effective facilities, as well as other activities such as a 'business development center' providing very low-cost, shared services to small, start-up businesses.
 "ICI benefits because it has the ability to continue in business with the U.S. government, to use these facilities for ICI manufacturing and commercial use, and to take part in the growing business opportunities we believe will develop as this facility becomes the economic center for the region," Saunders added.
 ICI Explosives Environmental is a unit of ICI Explosives formed to meet the needs of a large, rapidly growing market for resource recovery in explosives and related materials. ICI Explosives is the world leader in commercial explosives and is a business unit of Imperial Chemical Industries PLC (NYSE: ICI). ICI Americas Inc., the contracting body, is one of ICI's U.S. subsidiaries.
 -0- 3/4/93
 /CONTACT: Sid Saunders, 215-666-8786, or Steve Hill, 812-284-7778, for ICI Explosives Environmental/


CO: ICI Explosives Environmental; ICI Explosives World Group ST: Pennsylvania, Indiana IN: SU: CON

PS -- NY039 -- 3266 03/05/93 01:20 EST
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Date:Mar 5, 1993
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