Adbri loses $70m Alcoa contract
Adbri shares sank 25pc after it lost a contract worth about $70m in revenue to supply Alcoa Corp with lime.
Adbri shares sank 25 per cent after it said it had lost a contract worth around $70m in revenue to supply Alcoa Corp with lime.
Adbri said its Cockburn Cement subsidiary had been notified the contract won’t be renewed when it expires at the end of June next year.
Adbri, formerly Adelaide Brighton, said the contract loss was not expected to impact revenue materially until after the middle of next year, and it will “promptly evaluate and take necessary mitigating actions.”
“We are disappointed with Alcoa’s decision to displace locally manufactured product with imports from multiple sources, particularly considering our almost 50-year uninterrupted supply relationship,” chief executive Nick Miller said.
Dow Jones Newswires
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