Adelaide Brighton buys 30% of Cementir Holding unit

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Australia: Australian building materials producer Adelaide Brighton will buy a 30% stake in a Malaysian white clinker and white cement producer, Aalborg Portland Malaysia (APM) for US$29.7m. APM is owned by Aalborg Portland A/S, a subsidiary of Italian entity Cementir Holding. The deal also secures a 10 year supply agreement with APM and continues Adelaide Brighton's efforts to access raw material given its 'maxed-out' production capability.

"The high dollar, rising power costs, the carbon tax and increasing labour costs make building a new plant in Australia too high in terms of capital expenditure costs," said Adelaide Brighton's chief financial officer Michael Kelly. He added that Adelaide Brighton needs to secure imports and that the acquisition provides a strategic position in Asia for the company.

APM is also considering a US$18.6m expansion of the plant to increase white clinker production capacity from about 2015. Imports of cementitious products, including grey and white clinker, cement and blast furnace slag are expected to increase from approximately 1.6Mt/yr in 2012 to more than 2Mt/yr in 2016.

Last modified on 05 December 2012


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