Adbri (ASX:ABC) subsidiary loses $70M services contract
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.
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Source: Finance News Network
