• Forms joint venture between Viridian (NZ) and Euroglass 
• Delivers more cost efficient structure through cost synergies and site rationalisation

CSR has strengthened its competitive position in the New Zealand glass market by establishing a joint venture between its glass subsidiary, Viridian New Zealand Limited (“Viridian”) and another glass processing company, Euroglass Systems Limited (“Euroglass”).

The joint venture is expected to result in a more efficient operational structure for both entities through ongoing cost synergies and site rationalisation savings.

It will also enable both companies to benefit from an enhanced product range and new product development opportunities in the glass market.

“The joint venture is consistent with our strategy to pursue accretive transactions to strengthen our competitive position in our key building products markets,” said CSR managing director, Rob Sindel.

“Bringing Viridian and Euroglass together under the one structure enables us to deliver a significantly more cost efficient operation in the New Zealand glass market.  It also provides enhanced leverage to a recovery in construction markets in both the North and South Islands.”

The equity interest in the joint venture will be split between Viridian (58%) and Euroglass (42%).   The joint venture will be controlled by a board comprised of representatives of both CSR and Euroglass.

All necessary regulatory approvals for the transaction are expected to be completed during February 2012 and the transaction is expected to be effective from 1 March 2012.