Adbri (ASX:ABC) subsidiary loses $70M services contract

Company News

by Katrina Bullock

Cockburn Cement, which is a subsidiary of Adbri (ASX:ABC) has been informed by Alcoa of Australia that the company has elected not to renew its current lime supply contract.

The current expires on 30 June 2021 and was worth around $70 million in annual revenue for the group.

Adbri CEO Nick Miller says the company “are disappointed with Alcoa’s decision to displace locally manufactured product with imports from multiple sources, particularly considering [the] almost 50-year uninterrupted supply relationship”.

He says that Adbri will work quickly to mitigate the impact on local jobs supporting its lime business and remains committed to supplying its Western Australian resources sector customers.

Shares in Adbri (ASX:ABC) are trading 17.78 per cent lower at $2.59.

Katrina Bullock

Finance News Network
Katrina is a respected TV journalist, as well as a renowned presenter and award winning lawyer. She holds a Bachelor of Laws (Honours 1st class, division 1), a Bachelor of Business (with Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She began her career as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel of Greenpeace Australia Pacific. In 2020 Katrina was named one of the 30 best lawyers in Australia under 30 by Lawyer's Weekly.