Boral Limited and Lafarge announced today that its Joint Venture concrete roof tile business, MonierLifetile, will invest US$69 million to build new roof tile plants in Las Vegas, Nevada and in Lake Wales, Florida.
The new Las Vegas facility will complement MonierLifetile's existing production facility in Henderson, NV, just outside Las Vegas. The new plant will produce a variety of roof tile profiles, in addition to trim tile, with a capacity to produce 75% more roof tiles annually on a high-speed line. The plant will service customers in the new growth corridors of Las Vegas and it will free up capacity in MonierLifetile's Rialto plant in Southern California and its Phoenix plant in Arizona.
The new plant in Florida, which will be built on MonierLifetile's existing Lake Wales site, will have the capacity to produce 40% more roof tiles annually on a high-speed line. The new plant will be well placed to service customers throughout Florida, especially in the high growth markets in Central and North Florida, while freeing up capacity in its Southern Florida plants to better service those markets. The Florida investment will also support growth in the emerging Southeast markets of Georgia and the Carolinas.
“We are pleased to announce the establishment of additional capacity in Florida and Nevada where we have experienced unprecedented demand. Both markets are characterized by high growth and an increasing preference for concrete roof tiles. The new plants will enable us to better serve the customers as well as grow into new markets in the Southeast and the broader Southwest area,” commented Jean-Christophe Barbant, Group Executive Vice-President, President the Roofing business.
Commenting on the US concrete roof tile expansion program, Emery Severin, President of Boral Industries, said: “MonierLifetile is number one in concrete roof tiles in the USA and we are continuing to demonstrate our commitment to the market by investing in modern, low-cost capacity to supply market growth. We have a positive view on the underlying strength of the US housing market as well as the opportunities for growth through increased penetration of concrete roof tiles in the USA.”
Notes to editors:
MonierLifetile, the leading manufacturer of concrete roof tile in the U.S., is a 50/50 Joint Venture of Boral and Lafarge Roofing. Currently, MonierLifetile has 13 active manufacturing plants in the United States. The company employs 1350 employees.
In addition to the MonierLifetile Joint Venture, Boral and Lafarge joined forces in Asia in the plasterboard business. They operate jointly the Lafarge Boral Gypsum Asia Joint Venture.
Boral Limited is Australia's largest building and construction materials supplier and has significant operations in the USA and in Asia. With some A$4 billion worth of sales, Boral has over 15,100 employees working across 650 operating sites.
Lafarge Roofing is the roofing division of the Lafarge Group. With 211 production sites and activities in 45 countries, Lafarge Roofing is the leading global supplier of pitched-roofing products, roof system components and chimney systems. In 2004, Lafarge Roofing employed 11,683 people, generating sales of 1.5 billion euros.
Statements made in this press release that are not historical facts, including the planned capital expenditures and expansion of production capacity in the Roofing business, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors"), which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonal nature of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's public filings with the French Autorité des Marchés Financiers and the US Securities and Exchange Commission including its Reference Document and annual report on Form 20-F. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.