Elders to divest auto manufacturing business

Elders have announced that it will divest its Futuris Auto manufacturing business and focus on becoming a 'pure play' rural services business.

Elders have announced that it will divest its Futuris Auto manufacturing business and focus on becoming a 'pure play' rural services business.

According to the company it will "re-focus on its investment in growth in the core rural services business".

Malcolm Jackman, Elders' CEO, explained that "this decision will see us divest the Futuris Auto business sometime in the foreseeable future.

"Given the rapidly expanding footprint of Futuris Auto and its reputation as an advanced manufacturer of automotive interior systems, it is an appropriate time for us to look at options for the business," Jackman said.

"With manufacturing operations in Australia, China, Thailand, the USA, and South Africa, the interests of [the company] will be best served by an owner focused on the global auto sector."

Elders will be using Greenhill Caliburn to advise on strategic options for the divestment.

Jackman went on to say that "the staged exit form the company's Forestry assets continue to progress at a satisfactory pace and this decision around the company's future strategic direction is an important step".