Australia's biggest building materials manufacturers are cutting back operations, hiking prices and considering moving production offshore to manage a spike in power and gas bills, adding to pressure on the government to resolve the country's energy crisis. The CEOs of Brickworks Ltd, the country's largest brickmaker, and Boral Ltd, the top maker of most other construction materials, flagged the changes even as Australia's new Labor government scrambles to try to beef up power supplies and bring down electricity prices.
Australia's top construction materials maker Boral Ltd said on Monday it will sell its North American fly ash business for $755 million, marking its exit from the market as it looks to focus on its domestic business. Boral has been selling its U.S. businesses since last year in a retreat from its global expansion strategy that led to a hefty writedown in 2020. The sale, to Eco Material Technologies, which is backed by private equity firms One Equity Partners and Quadrant Management, means Boral will have sold its U.S. businesses for more than A$4 billion ($2.80 billion), Chief Executive Zlatko Todorcevski said.
Westlake (WLK) completes the acquisition of Boral's North American building products unit. The move is set to boost the company's portfolio and add to growth parameters.