Boral has a new CEO, Mike Kane, a New York-raised building executive who will look to shed the company’s non-core assets.
Kane will replace interim CEO Ross Batstone on October 1, and The Australian reports that $200-300 million of assets at the country's biggest building supplies manufacturer may be shed to raise cash.
“We have been actively involved in taking a hard look at divestitures, and the work is ongoing,” he said.
“Australia has to go through many of the procedures in the US. A lot of lessons over there would have to be applied here as we adjust the business to meet the market demand.”
The Sydney Morning Herald reports that Kane’s strategy will have similarities with Mark Selway’s (CEO before Batstone) approach of belt-tightening and selling non-core assets.
“We're going to stick with the strategy, which I was a part of developing,” said Kane, who is moving from his role as president of Boral Roofing in the US.
Kane has told The Australian Financial Review that his year at Calstar Products, which produces recycled building materials, taught him a little about green building products, which are expected to be more important as the building industry uses fewer energy-intensive products.