- Adbri (ABC) subsidiary, Cockburn Cement, has lost its lime supply contract with Alcoa of Australia
- The contract contributed $70 million to the company’s revenue
- Alcoa will not renew its contract from June 2021, ending an almost 50-year partnership
- Adbri is down 24.6 per cent on the market this morning and is trading for $2.38 per share
Adbri (ABC) subsidiary, Cockburn Cement, has lost its lime supply contract with Alcoa of Australia.
Alcoa will not renew its contract from June 2021 after an almost 50-year partnership. The contract adds $70 million to the company’s annual revenue.
Adbri is one of Australia’s leading integrated construction materials and lime producers. It supplies its products to the building, construction, infrastructure and mineral processing markets.
The company will now evaluate and take necessary mitigating actions. It said it is hard to measure the full financial impact of Alcoa’s decision at this stage.
“We are disappointed with Alcoa’s decision to displace locally manufactured product with imports from multiple sources, particularly considering our almost 50-year uninterrupted supply relationship,” CEO Nick Miller said.
“We will work quickly to mitigate the impact on local jobs supporting our lime business and we remain committed to supplying our WA resources sector customers,” he added.
Adbri is down 24.6 per cent on the market this morning and is trading for $2.38 per share at 11:52 am AEST.