Boral has announced that production of clinkers will be suspended at its Waurn Ponds plant, which will affect 90 jobs.
The manufacture of the product had become too high, with the exchange rates and input costs cited in the decision, which came after a review by Boral of its Australian cement operations.
“A continued low level of demand associated with the downturn in Australian building and construction
activity is also adversely impacting the profitability of Boral’s cement business, where high fixed cost
manufacturing assets continue to be underutilised,” said Mike Kane, the company’s CEO, in a statement.
90 employees will be affected at Waurn Ponds. No jobs losses were announced, but Boral will “explore all options” in consultation with workers, with redundancies and redeployment as options to be explored.
“Construction materials in Australia is a core business for Boral,” stated Kane.
“However, across all of our businesses need to ensure that we are aligning our domestic production with demand levels, and that our cost structures are globally competitive.”