Brick supplier JV commences operation

The joint venture (JV), trading as Boral CSR Bricks Limited, officially began operating on 1 May, 2015, just over a year after it was first proposed in April 2014.

The JV combines the Australian east coast brick operations of Boral and CSR, encompassing 12 manufacturing sites across New South Wales, Victoria, Queensland, South Australia, Tasmania and the ACT. Combined, these operations have the capacity to produce in excess of 600 million standard bricks.

For the 12 months ended 31 December 2014, the JV had a combined annual turnover of approximately $270 million. The integration of the two companies’ east coast brick operations will be completed over the next 12 months and is expected to result in initial overhead savings of $7 million to $10 million per annum.

The importance of these savings was underscored by the Australian Competition and Consumer Commission’s (ACCC’s) assessment of the proposed JV in December last year. ACCC chairman Rod Sims explained that Boral would be “unlikely to remain in clay brick manufacturing in eastern Australia if the joint venture does not proceed”.

At the time, Boral CEO and managing director Mike Kane said Australian brick manufacturing was being “challenged” due to a declining brick usage and high input costs, adding, “The joint venture will allow us to drive efficiencies across the combined network of operations, creating a more sustainable business.”

Nick Pezet, who was most recently the executive general manager (EGM) of CSR’s bricks and roofing businesses, was appointed as the EGM of the Boral CSR Bricks JV.

The JV is 60 per cent owned by CSR, with Boral holding the remaining 40 per cent.

More reading
Brick supplier joint venture to proceed
Concerns about proposed brick supplier JV
Brick giants embark on joint venture

Leave a Reply

Send this to a friend