About Capral Aluminium
Capral is an Australian company listed on the ASX (Code: CAA). It commenced operations in Australia in 1936 and is Australia's largest manufacturer and distributor of aluminium profiles, with assets of approximately $260 million.
Capral has a National footprint of world class aluminium extrusion plants, with 8 operating presses with annual capacity of 75KT.
Capral has an extensive distribution network, consisting of 5 major distribution facilities, 5 regional centres and 12 metropolitan trade centres with an extensive range of products and logistics capabilities.
Capral is a market leader in supply to fabricators and distributors, focussing on the Residential, Commercial and Industrial segments.
Capral has a comprehensive product range, innovative R&D capability, and is well positioned to take advantage of changing building regulations in Australia.
Capral employs around 900 people within its operations throughout Australia, with significant industry skills and expertise.
Transformation of Capral
Transformation of Capral is underway as part of a three year turnaround strategy, commencing with the appointment of Phil Jobe as Managing Director in April 2009. The first phase has been completed:
Recapitalisation of the Balance Sheet in November 2009, transforming the financial position of Capral, raising net $44.0 million in cash and, in addition, eliminating $63.0 million in debt, providing Capral with the opportunity to deliver profitability and growth
- Introduction of a new operating philosophy
- Implementation of a new management structure and accountability
- Realisation of significant cost savings
- Launch of an Anti Dumping case
- Achievement of positive underlying cash flow and profitability.
The Second Phase (Project Relaunch) is now underway in order to optimise business performance whilst continuing to right size. For the Manufacturing Business, this involves:
- Transition to a state based manufacturing approach
- Fix or exit unprofitable “value adding” activities
- Consolidate space requirements at the Bremer Park facility
For the Distribution Business, this involves:
- Lift under-performing state operations
- Optimise the supply chain
- Implement sales growth initiatives
Progressively, the focus will move to the third phase of the strategy which is to leverage Capral's capabilities and to pursue strategic growth opportunities.
Anti-Dumping Case
On the application of Capral, in June 2009 Australian Customs and Border Protection Service lodged an investigation into the dumping and subsidisation of certain aluminium extrusions exported to Australia from China. The Government decision in October 2010 established that dumping and Chinese Government subsidies were unfairly occurring and causing injury to the Australian industry. Capral is not satisfied with the level of measures found and has taken Federal Court action in relation to aspects of the Government decision. Capral is continuing to seek a "Fair” anti-dumping resolution and the outcome of this case is very important to Capral.