Sep 2004 Financial News

McAl in US$12m roof tile joint venture -

Sep 29, 2004

ANSA McAL has signed a joint venture agreement with Boral of the United States to establish in Trinidad, a clay roof tile plant at a cost of US$12 million.
The manufacturing plant is expected to start production early in 2006 and produce approximately 15 million clay roof tiles per year. At full capacity the plant will employ approximately 70 people.

Group chairman, Norman Sabga, in announcing the recent signing of this joint venture agreement noted, “ . . . As the largest and most diverse group in the region, our continued success depends in part, on our ability to capitalise on the strength of our Caribbean platform as a spring board to the valuable markets outside the region.”

This investment is in keeping with ANSA McAL’s vision to broaden its investment base and expand its exports to the United States and the region.

Boral USA is a fully owned subsidiary of Boral Limited, a leading producer of building and construction materials in Australia. Boral USA employs approximately 2 400 people at around 100 sites across the United States. Boral Limited shares are traded on the Australian Stock Exchange in the top quartile of ASX100 companies.

The 50-50 joint venture agreement puts ANSA McAL and Boral in a position to compete in the second largest clay tile market in the United States.

The agreement will consist of the clay plant in Trinidad, Caribbean Roof Tile Company Limited, and a distribution company in the United States, US Tile LLC, enabling the partners to take advantage of Trinidadian clay and natural gas reserves – making a vital connection to ANSA McAL’s experience in clay technology at ABEL and Boral’s access to the United States market.

This investment by the ANSA McAL group continues to strengthen the group’s presence in the wider Caribbean and focuses its resources on sustainable exports within the Caribbean Basin and beyond so as to remain competitive in a post Free Trade Area of the Americas environment.

Source: Nation Barbados