Orica to expand with lower spending

Orica says it's in a position to expand without outlaying large amounts of expenditure on building plants as it relies on others for explosives ingredients

Explosives and chemicals supplier Orica says it can expand without building as many plants as it's done in the past.

Orica expects higher profits next year as key North American coal markets improve and the company sells more sophisticated explosives.

Chief executive Ian Smith told ABC Television's Inside Business program Orica had boosted its cash flow by adopting a "capital light strategy".

Mr Smith says Orica will be expanding, but it won't need to build as many plants as has taken place previously.

He says Orica has external sources of supply.

Mr Smith says a lot of capital had been invested into converting gas through ammonia to ammonium nitrate which is Orica's main source of explosives.