Industry News

Boral buys out gypsum joint venture

Established by the two companies in 2000, the LBGA enterprise grew to comprise 20 manufacturing operations in eight countries, trading operations in three, exports to over 30 markets and a capacity for approximately 450 million square metres of plasterboard. Boral bought out its former partner for $530 million, a move that?s set to make Boral the single largest provider of plasterboard, metal stud components, plasters and compounds throughout Asia.

According to Agg-Net, the company already has a foothold in Australia, Korea, Thailand, Indonesia, Vietnam, Malaysia, India and the Philippines, while it continues to grow its business in the massive market of China.

LBGA?s revenue has grown at a rate of 10.4 per cent per annum since 2001, while the plasterboard market as a whole has grown at an average rate of 7.5 per cent per year over the same period.

?We have enjoyed an extremely successful partnership with Lafarge over the last 10 years and together we have established the leading plasterboard business in Asia,? said Boral chief executive Mark Selway. ?The acquisition of Lafarge?s interest in LBGA is an outstanding opportunity to gain management control and own the majority of a high quality business with excellent growth prospects and strong earnings potential. We look forward to continuing to work with the LBGA management team and employees to realise the full potential of the plasterboard business in the region.?

The deal is expected to be concluded by the end of the year.

Source: Boral Limited

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