Indicative offers are sought for Empire Rubber (Bendigo) and Mills Elastomers (Dandenong).

Nylex sold key Automotive Division assets, including Empire Rubber and Mills Elastomers, to Huon Corporation Pty Ltd (“Huon”) in late 2005.

Huon recognises specialist nature of rubber manufacturing and has determined not to hold these assets in the longer term. Huon seeks to engage parties interested in the acquisition of these assets.

Empire Rubber will report a loss in 2006 and Huon anticipates a move towards profitability in 2007 with total sales forecast to $51.7mil comprising 52% automotive and 44% custom mixing. Seal sales are forecast to $13.6mil.

Key drives to current performance have been restructuring costs associated with the business and a softening of production volumes due to a reduction from record sales of locally manufactured motor vehicles.

Huon anticipates a lessening in dependence on automotive sector sales in from 68% to 52%.

Huon indicates that Mills Elastomers is currently trading profitability and anticipates new sales contracts to further strengthen earning performance.

The businesses would further benefit from an owner with institutionalised rubber expertise, broader market sector exposure, and manufacturing assets in Asia.