New Zealand
James Hardie faces class action over HardieTex 11 August 2015
New Zealand: Victims of leaky homes are being urged to join a class action being formed against James Hardie over one of its fibre cement cladding products, HardieTex.
Law firm Parker & Associates has filed a High Court case on behalf of a Wellington couple, who have claimed that HardieTex was the cause of their US$200,000 leaky home problem. The claim alleges that James Hardie was negligent in the design, manufacture and supply of HardieTex, which was used to build thousands of houses through the 1990s and early 2000s. Building owners who have suffered damage have until December 2015 to join the action.
The country manager for James Hardie in New Zealand, Justin Burgess, said that HardieTex is no longer on the market.
Holcim New Zealand develops Waitemata Port 31 July 2015
New Zealand: Holcim New Zealand is building a new cement silo at the Waitemata Port. Cement ships will relocate from Onehunga to the new site, which is expected to be completed in the middle of 2016, according to the Manukau Courier. A Holcim spokesperson said that the Onehunga Port will continue to be used as a bagging plant and the silos will remain operational.
New Zealand: The third-largest lime producer in the world, US-based Graymont, has bought the Makareao lime plant in Otago from Holcim and took over the facility on 1 July 2015. Graymont, which has extensive interests in Canada, the US and Mexico, has also bought the McDonald's lime plant at Te Kuiti, Waikato, New Zealand.
Graymont Makareao's operations manager Craig Porter said that the lime plants' output had grown over the last two or three years and that he was excited about the new ownership. Staffing at the plant will not be affected.
Holcim's Weston cement plant project was put on hold in 2013 after it decided to import cement into New Zealand and build two new terminals, including one at Timaru, about four months from the completion of the plant. Waitaki Mayor Gary Kircher said that Holcim still owns the Weston site, associated quarries for limestone, coal and sand and consent for the cement plant that could be established there.
James Hardie profit jumps despite soft US housing recovery 20 February 2015
US/Australia: James Hardie chief executive Louis Gries said that the pace of the US housing recovery is underwhelming and remains below expectations as he reported an 11% rise in its third quarter 2015 adjusted profit to US$48.6m. Gries said that James Hardie has managed to increase prices on some product lines despite the slower-than-expected rebound in new home building in the world's biggest economy.
"We have higher volumes in all of our businesses and our average price is up in the US. The US housing market is still pretty flat for new construction. Housing starts are well below what you'd expect three to four years into a recovery," said Gries.
Despite on-going muted building in the US, where James Hardie derives about 80% per cent of its revenue, the company is going ahead with big capacity expansions at its Plant City, Florida, plant and at plants in Cleburne, Texas and Carole Park in Queensland, Australia. In the first nine months of its 2015 financial year, which ended on 31 December 2014, James Hardie spent US$154.3m on capacity expansions and new land acquisitions in New South Wales, Australia and Tacoma, Washington, USA. Some capacity expansions have been delayed pending a pick up in conditions.
James Hardie's net operating profit in the quarter that ended on 31 December 2014 rose by 17% year-on-year to US$108m. Revenue rose by 10% to US$388m. James Hardie expects full-year adjusted net operating profit to be between US$210 - 222m. In its Asia Pacific business, James Hardie expects strong growth in the Philippines due to momentum in high rise developments and a push into the commercial building market. The Australian and New Zealand businesses are both expected to improve on the back of strong new home building and a rebound in repairs and remodelling in Australia.
James Hardie has a legacy asbestos liability to compensate victims suffering asebestos-related diseases from use of the company's former products. It pays 35% of its operating cash flow into the independently-run Asbestos Injuries Compensation Fund (AICF). In the first nine months of its financial year, asbestos claims were 11% higher than actuarial expectations. On 1 July 2014, James Hardie paid US$113m to the AICF.
Graymont to buy Holcim’s McDonalds Lime for an undisclosed sum 15 December 2014
Canada/New Zealand: Canadian lime company Graymont has agreed to buy McDonalds Lime from Holcim New Zealand and Bluescope Steel, owned New Zealand Steel, for an undisclosed sum. The McDonald's sale is subject to regulatory approvals and should be completed in 2015.
Holcim plans to close its Westport cement plant in 2016 and will also sell its Taylor's Lime assets to Graymont. McDonalds Lime is 72% owned by Holcim New Zealand, with the remainder owned by New Zealand Steel. It has the country's largest lime quarry at Oparure, north of Te Kuiti.
Graymont is North America's second-largest supplier of lime and lime-based products and also has an investment in Grupo Calidra, Mexico's largest lime producer. This is the Canadian company's first investment in the New Zealand market.
Holcim has been trying to sell the lime business, which it no longer considers a core business, as it plans for imported cement to replace local production at Westport. It wrote down the value of its Westport cement plant ahead of the coming closure, booking US$24.1m of charges for the plant. The plant will close by the second half of 2016 when new US$77.6m import facilities at Waitemata in Auckland and Timaru are fully operational. Plans for a new cement manufacturing plant at Weston in North Otago remain on hold, but Holcim is keeping the assets so it has the option of 'eventually building a new cement plant.'
James Hardie’s second quarter profit jumps by 66% 20 November 2014
Australia: Fibre cement producer James Hardie has posted a sharp increase in its operating profit for the second quarter of its 2015 financial year, despite a slower-than-expected recovery in the US housing sector.
James Hardie, which generates 66% of its revenue in Europe and the US, had warned of short-term US uncertainty with the recent 'flattening in housing activity,' but has forecast a moderate improvement for the year ending in March 2015. Its Australian, New Zealand and Philippines businesses are also expected to improve.
"Management cautions that, although US housing activity has been improving for some time, market conditions remain somewhat uncertain and some input costs remain volatile," said James Hardie.
The company reported a net operating profit of US$127m for the quarter that ended 30 September 2014, up from US$51.9m in the same period of 2013. Chief executive Louis Gries said that the 66% jump reflected increased volumes and higher average net sales prices across its US, European and Asian fibre cement businesses, which drove net sales up by 12% for both the quarter and the half-year. "The recovery of the US housing market remains below our expectations at the beginning of the year," said Gries.
For the 2015 financial year, James Hardie expects US$205 – 235m of net operating profit, excluding asbestos compensation costs. In the 2014 financial year, the company reported US$197m of net operating profit.
Terra Cement partners with Ore Mines International 06 November 2014
Australia: Terra Cement, a sustainable cement technology company, has signed a joint venture agreement with Ore Mines International (OMI) in South Australia to form a new company, called Terra Cement Australia (TCA). TCA will engage in the marketing of Terra's proprietary process (patent pending) for producing sustainable cement using ash in Australia, New Zealand and Papua New Guinea.
"As collaborators with a global reach and local market knowledge, industry leaders such as OMI play a significant role driving innovation to market," said Henry Val, CEO at Terra. "OMI's expertise enables rapid commercialisation by freeing us to focus on the development of our core technology. Likewise, our technology gives OMI access to a large, new market that would not exist without Terra."
TCA will convert existing cement plants and mixing facilities to produce hydrogel made from fly ash in Australia. When organic proprietary liquids are added, sustainable cement is produced, which is stronger, more durable and cures faster than Ordinary Portland Cement. No thermal energy is used and no carbon dioxide emissions are produced during the manufacturing process.
OMI has conducted preliminary testing of the ash available in Australia and has determined it to be suitable for the production of its cement. OMI has ordered the design for the conversion process for its existing facilities and will complete the process in the near future. TCA, as a joint venture, will begin its operations by the end of 2014.
Holcim jobs lost in New Zealand/Australia merger 24 June 2014
New Zealand: Holcim New Zealand has revealed that a company shake-up will result in four management jobs in Christchurch being axed in the next few months. In addition, the wind-down of the Westport cement plant in 2016 has been confirmed, which will result in the loss of about 120 jobs. It is also considering selling part or all of its lime business.
Holcim New Zealand's managing director, Jeremy Smith, will be made redundant, with Holcim announcing that it will combine its New Zealand and Australian operations. Three other management jobs will also be axed, although the head office in Christchurch will remain open.
"Other than the four senior roles announced as being dis-established in 2015, no other changes are planned in the near future," said Smith. Commenting on the status of other staff numbers once all the plans come into play, Smith said, "That is not known and it is too early to even discuss. The changes to the business model will eventually reduce the scale and scope of the New Zealand business over the coming years and it will require a smaller corporate management operation after 2016." Holcim currently employs 420 staff in New Zealand.
Holcim announced in 2013 that it was halting cement manufacturing in New Zealand and replacing it with bulk importing of cement for the New Zealand market. As such, Holcim has gained final approvals for construction to begin on its two new import cement terminals at Timaru and Auckland. Planning work is already underway on the Timaru project, where two 30,000t cement terminals are to be built. The terminals are part of Holcim's US100m investment in its New Zealand operations.
Holcim New Zealand announces terminal locations 18 December 2013
New Zealand: Holcim New Zealand intends to invest US$80m towards building two cement import terminals at Primeport Timaru, South Island and Waitemata Auckland, North Island after abolishing plans for a new integrated cement plant in New Zealand earlier in 2013.
Each site will store up to 30,000t of cement and will take two to three years to build. The Timaru terminal will include a ship unloader and conveyor system leading to an enclosed storage facility on leased land. There will also be pumping equipment allowing cement to be fed back from storage on to coastal ships.
This story was amended on 19 December 2013
New Zealand: Holcim New Zealand Ltd has announced that it will spend more than US$80m on the construction of an import terminal and related infrastructure that will allow it to import and distribute bulk cement to the New Zealand market, according to local news agency Scoop Independent News. The terminal is expected to be operational in two to three years time. The location of Holcim New Zealand's new import terminal is yet to be finalised and the company is investigating options at a number of New Zealand ports.
Announcing the decision, Holcim New Zealand Ltd managing director Jeremy Smith said, "This represents a substantial commitment by Holcim to the New Zealand building materials market. It means we will be able to leverage off the vast resources available through the Holcim Ltd worldwide supply network to ensure that our New Zealand customers receive cement of a quality and specification suitable for New Zealand conditions."
Once operational, cement imported through the new terminal will replace local production at the company's Westport cement plant. Holcim New Zealand has signalled for some years that the Westport plant was not sustainable in the long term. The decision also means that the long-delayed proposal for a new cement plant at Weston, near Oamaru, is on hold for the foreseeable future. Holcim will, however, maintain ownership of its land assets for the foreseeable future.
"We recognise that this decision has an impact for our staff, customers and for the Westport and Weston communities," said Smith. "It's one we've arrived at after extensively investigating a range of cement supply options and we will be working through the implications with those who will be impacted by the move. For the current economic environment, constructing an import terminal and importing cement is simply the most appropriate decision."