Lafarge and Boral today signed a binding agreement which has established a joint venture to operate their gypsum assets in South Korea, China and ASEAN countries.
The intention to form this joint venture was announced by both companies on 24 February, 2000 and the agreement signed reflects the terms detailed in that announcement.
Lafarge will contribute 73% of the assets at the formation of the joint venture but Boral has the right to increase its initial minority shareholding to 50 %, mainly by financing development projects in the first three years. Voting rights at Board level will be equal.
The new joint venture will have almost 200 million square meters of gypsum board capacity, four specialist ceiling tile plants, one metal profile rolling mill and 150 000 tonnes of production capacity for compounds and industrial plaster backed up by well-established distribution networks.
The new entity will be market leader in South Korea, China (Shanghai), Malaysia, Indonesia and the Philippines. The administrative approvals required to finalize the transfer of assets are expected to be obtained by the end of the year.
Lafarge and Boral already operate a joint venture in the rooftile business in the USA.
Boral (headquartered in Sydney Australia) holds leading positions in each of the building and construction material businesses it operates in Australia, Asia and the USA. It has global sales of A$3.8 billion (around 2.4 billion euros) and employs over 15,000 employees.
World leader in construction materials, Lafarge holds top ranking positions in each of its five Divisions: Cement, Aggregates & Concrete, Roofing, Gypsum and Specialty Products. The Group employs 71,000 people in 70 countries. It generated sales of Euro 10.5 billion in 1999.