Adbri and Alcoa have announced a new agreement. Image: Maurice Norbet//stock.adobe.com
AdBri has revealed a new arrangement with Alcoa for its quick lime supply agreement to reflect the ‘changing demand’ in the market.
Cockburn Cement Limited will supply Alcoa on revised terms until the end of April 2024. This arrangement differs from the previous agreement, which ran until October 2024.
AdBri has told its shareholders it expects lower lime volumes from 2024 and beyond as a result of this revision.
The company confirmed in its public statement that it is reviewing its lime operations to match the “evolving lime outlook” and the “changing demand profile” of customers.
“The Western Australian lime market is important to Adbri, and we are taking steps to ensure we are aligned with the needs of our customers,” AdBri chief executive Mark Irwin said.
“An ongoing lime operations review has identified a number of opportunities for Cockburn Cement.
“This includes the potential to adopt a hybrid supply model, which may involve a mix of locally manufactured products and imported lime, enabling us to deliver additional product grades to the marketplace.”
The company said it expects demand for the balance of its products to “remain strong” and in line with the past financial year. This is supported by pricing and cost-to-fuel margin expansion in the 2024 financial year.
Irwin said the company would look at this model moving forward.
“We will investigate the feasibility of this model within the footprint of our Munster facility, utilising existing infrastructure such as silo and storage facilities, while continuing to leverage the site’s valuable rail access,” Irwin said.
Recently, AdBri has been working with major aggregate producer CRH and Barro Group on a potential takeover.
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