Boral moves to unload more assets

Building products group Boral is to examine the future of its US fly ash businesses as the company continues to deal with fallout from its troubled venture into the North American market.

The company told investors it was reviewing the businesses and would either retain control or enter into a joint venture, strategic alliance or sell the business entirely.

Advisers have been appointed to ‘explore value creation opportunities’ presented by its fly ash businesses.

In October Boral agreed to sell its half share in a key building products venture USG Boral for $1.43 billion.

USG Boral is the company’s venture with Germany-based Gebr Knauf KG, which includes the important plasterboard businesses in Australia, New Zealand, Asia and the Middle East.

Boral is also looking at ways to offload its North American building products businesses, Headwaters which it paid $3.5 billion for in 2016.

That deal cost chief executive Mike Kane his job with new CEO and Managing Director Zlatko Todorcevski wasting no time in restructuring the business, accepting a high offer for USG which reduces debt and pressures on the company to swiftly exit Headwaters.

Todorcevski said Boral saw increasing demand from US President Joe Biden’s infrastructure programs.

He said: “New opportunities for supply exist from harvesting landfills, imports and natural pozzolans, which we expect will more than offset the decline in fly ash supply as the US transitions away from coal power.

“As we continue to build our alternative supply strategy, strategic alliances and opportunities for partnership will be considered in parallel with divestment options or continued ownership.”

Picture: Boral/flyash.com

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