Displaying items by tag: Australia

Australia: CRH has won approval from Adbri shareholders to acquire 57% of the company for close to US$1.4bn. The deal was the result of a unanimous vote in favour on 12 June 2024.

Adbri’s lead independent director and chair of its independent board committee Samantha Hogg said “A combined CRH and Adbri will bring growth opportunities, new talent and innovation to continue to strengthen Adbri’s product offering in Australia.”

Australia: Veolia ANZ and ResourceCo have secured a contract to supply over 1Mt of refuse derived fuel (RDF) from their Adelaide facility to Adbri Cement's Birkenhead plant, aiming to replace natural gas and reduce greenhouse gas emissions. According to Veolia, around 1.5Mt of waste will be diverted from landfill during the course of the contract.

Brett Brown, chief operating officer at Adbri, said "Adbri has pioneered the use of RDF in Australia. Cement manufacturing is energy intensive, and the use of alternative fuels is one of the levers we are using to reduce our emissions as part of our goal of net zero by 2050."

Australia: Cement Australia has received a US$34.4m federal grant for a kiln upgrade to its Railton cement plant in Tasmania. The upgrade will allow the plant to raise its alternative fuels substitution rate. The project is funded by the government’s Powering the Regions initiative, with total investments valued at US$215m.

Australian Minister for Climate Change and Energy Chris Bowen said “This US$215m investment in Australia’s hard-to-abate manufacturing and mining facilities is about securing the future of high-quality, low-emissions products made right here. Northern Tasmania, Central Queensland and Western Australia have been industrial powerhouses for generations, and the government is ensuring that continues. As global markets change rapidly, we’re supporting Australian industry to not only survive but thrive with our world-class products that support regional jobs across the country.”

Australia: The Australian federal government has granted Adbri US$32.5m for a new front-end engineering and design study at its Birkenhead cement plant. The study will assess the possible installation of a new vertical roller mill and post-production blending system at the plant. InDaily News has reported that the proposed upgrade will increase the plant’s production capacity and help to expand its range of reduced-CO₂ cements. The funding falls under the government’s US$260m Critical Inputs to Clean Energy programme, which aims to help decarbonise the Australian economy by 2050.

CEO Mark Irwin said “With the Commonwealth’s support we have the potential to further accelerate the decarbonisation of our operations and products.”

Australia: Cement Concrete & Aggregates Australia (CCAA) has appointed Michael Kilgariff as its CEO with effect from 6 May 2024. He will succeed Jason Kuchel, who has been working as the interim CEO.

CCAA represents the heavy construction materials industry in Australia. CCAA members operate cement manufacturing and distribution facilities, concrete batching plants, hard rock quarries, and sand and gravel extraction operations throughout Australia.

Kilgariff brings with him over 20 years industry association experience across infrastructure, transport, logistics, and energy sectors. He was the CEO of Roads Australia from 2018 to 2023, the managing director of the Australian Logistics Council from 2009 to 2018 and worked for the Energy Networks Association from 2004 to 2009.

George Agriogiannis, the chair of CCAA said that “Michael Kilgariff’s appointment comes at a critical time for CCAA as it goes through a process of renewal and transformation.” He continued, “The infrastructure industry is undergoing a pivot from transport to energy and social infrastructure, while the building industry is also facing a number of economic and social challenges, including an acute housing shortage. All these sectors require an efficient and sustainable supply chain of heavy construction materials.”

Australia: Boral has endorsed Seven Group Holdings' (SGH) increased takeover offer after the bidder enhanced its proposal. According to Business News Western Australia, Boral is now recommending its shareholders accept SGH's offer, previously rejected in March 2024. The offer has risen from an initial US$0.98/share to a maximum of US$1.11/share. An on-market buyback is also an option at up to US$4.19/share, with total shareholder value estimated between US$4.02 and US$4.17.

Boral's independent corporate advisory company, Grant Samuel, now finds the offer ‘reasonable’. SGH has increased its stake in Boral to 78.8% and proposes further governance adjustments by adding two more executives to Boral's board.

Managing director of SGH, Ryan Stokes, said "We are pleased to offer Boral shareholders the maximum consideration under our offer. Both new and existing SGH shareholders also stand to benefit from the US$0.20/share fully franked dividend that SGH will pay following completion of the offer." The offer period is extended to 15 May 2024.

Australia: Boral's independent directors have dismissed Seven Group's takeover bid, which valued the company at US$6.9bn. The directors argue the deal does not fairly or reasonably reflect Boral's value, especially considering its billion-dollar surplus property portfolio. Seven Group's offer of US$6.05 per share could potentially rise to US$6.25, but an independent expert from Grant Samuel has assessed Boral's fair value between US$4.24 and US$4.65 per share.

Seven Group's CEO, Ryan Stokes, said “We obviously disagree with their assessment strongly.”

Currently, Seven Group holds 71.6% of Boral and is offering a mix of cash and shares for the remaining stake, with potential incremental increases based on share acquisition levels and board recommendations.

Anthony Aboud, deputy head of equities at Perpetual, said "Our view is that Boral owns a unique and hard to replicate set of assets with an excellent management team led by Vik Bansal which is early on in its turnaround strategy."

A spokesperson for Boral said "We have carefully evaluated the Seven offer and recommend that shareholders should reject the Seven offer as it undervalues Boral. The independent expert has concluded that the Seven offer is neither fair nor reasonable, supporting the bid response committee's view. We encourage shareholders to remain with Boral and fully participate in the future value available through continued direct ownership of Boral."

Australia: Adbri has announced the early termination of its contract to supply quicklime to aluminium producer Alcoa, ending in April 2024 instead of the original plan for six months later. This decision is part of an amendment to meet changing demand. The news comes amid Adbri's ongoing review of its Western Australia lime operations and follows Alcoa's recent production curtailment at its Kwinana refinery. Adbri previously supplied to three Alcoa alumina refineries in Western Australia, but the number was reduced to one in 2021. 

Adbri is also in the process of finalising a US$2.1bn buyout with Irish company CRH.

Australia: Fremantle Ports has completed the construction of a 40m-high cement clinker storage dome at Kwinana Bulk Terminal in the Outer Harbour. This dome, a first in Western Australia and the second in Australia, can store an entire 40,000t shipment of clinker.

The new storage solution links to the adjacent Cockburn Cement plant and serves BGC, another major clinker importer. The dome was chosen for its smaller ground footprint compared to traditional dry product sheds.

CEO Michael Parker said "Without clinker, industry stops. Every tonne entering Western Australia comes through Kwinana Bulk Terminal.”

The terminal imports over 1.1Mt/yr of clinker, sourced from Indonesia, Japan, Malaysia, the Philippines and the United Arab Emirates.

Australia: Belgium-based Etex has acquired BGC Fibre Cement and BGC Plasterboard from BGC. The assets include the Canning Vale fibre cement board plant in Western Australia. Both businesses reported total sales of US$101m in the 2023 financial year.

Etex CEO Bernard Delvaux said “We warmly welcome our 200 new teammates coming from BGC. Joining forces with their plasterboard and fibre cement activities is a strategic opportunity for Etex. With this, we take a top three position in the fibre cement market and are eager to start delivering quality fibre cement to new customers.”