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 net assets of approximately $110 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 major distribution facilities, as well as regional and metropolitan 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 820 people within its operations throughout Australia, with significant industry skills and expertise.
Transformation of Capral
Transformation of Capral is underway as part of a turnaround strategy. The first phase has been completed:
Recapitalisation of the Balance Sheet in November 2009 has significantly reduced Capral’s debt position providing Capral with the opportunity to deliver profitability and growth
- Introduction of a new operating philosophy using lean management techniques
- 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
- Write down of assets to reflect current utilisation rates
The Second Phase is now underway in order to optimise business performance whilst continuing to right size. For Manufacturing, this involves:
- Delivering world class extrusion output rates
- Delivering high levels of customer service
- Develop profitable “value adding” activities
- Consolidate space requirements at the Bremer Park facility
- Improving capacity utilisation
For Sales & Distribution, this involves:
- The acquisition of the OneSteel Aluminium distribution business
- Extraction of acquisition synergies
- Alignment of sales with key customer segments
- Lift under-performing 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.
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. Capral is committed to anti-dumping reform in Australia and believes Australian manufacturers can compete on an even playing field.