New Chemeq CEO promises 'fresh eyes'

David Williams, the CEO designate of Perth-based antimicrobial specialist Chemeq (ASX:CMQ), begins his new role on August 1 and is excited about running the company.

While Williams acknowledges that Chemeq has had challenges in the past -- with cost blowouts dogging its specially built production factory in Rockingham, south of Perth, forcing it to look to investors such as Mizuho International, Stark Trading and Shepherd Investments -- he added that Chemeq will have challenges in the future, as any business does.

"My intent is to get my feet under the desk on Monday and sit down with the team, come in with a fresh set of eyes, perhaps have a look at things differently, and revisit it all and focus on the way forward," he said.

Williams said his primary aim was to drive value for Chemeq's investors through commercialisation of the company's products. Chemeq has developed a polymeric antimicrobial to treat and prevent animal intestinal diseases which has been shown to promote weight gain.

"We're now in a much stronger financial position than the company has been in the past. The pieces of the jigsaw are coming together," he said.

Before joining Chemeq, Williams was CEO of the Epic Energy group, a gas transmission company. "Epic went through a process of selling off its assets during last year and at the end of the day they were broken up in separate sales, so I was then off looking for new challenges," Williams said when asked why le left that role.

He joined Epic in 1999, after stints at Alinta Gas and the Civil Aviation Authority. He also has a legal background, with a focus on industrial relations and corporate commercial law, having been a partner at Freehills and also Ebsworth & Ebsworth in Melbourne.

Williams admitted that the pharmaceutical industry was new to him. But, he said, the principles involved in running a business such as Chemeq are universal: "Manufacture efficiently, market successfully, maintain a strict focus on the bottom line, while all at the same time just keeping a strong focus on health and safety, and obviously delivering shareholder return," he said.

Chemeq is still in the process of searching for a new chairman.

"We anticipate that we'll be making an announcement in that regard shortly," said Chemeq's executive chairman and current CEO Graham Melrose.

Melrose has been planning his departure from Chemeq since August 2004, when the search for new management began. Once a new chairman has been announced, Melrose will step down to become a non executive director.

Chemeq's share price was boosted by the news of Williams' appointment, with shares trading at AUD$1.26 at the time of writing, up $0.20 from $1.06 yesterday when the announcement was made.