• James Hardie Industries NV
• Website: www.jameshardie.com

Industry:

Construction Materials

Fiscal Year-End:

Mar 10

JHX is a leading international building materials company specialising in cellulose fibre cement. Fibre cement is used in applications from exterior siding and internal lining to roofing, fencing, bracing and decorative finishes. The company's main operations are in the US, where it holds in excess of 10% of the new residential siding market. JHX also operates in Australia, New Zealand, the Philippines and Europe.

JHX was listed on the ASX in 1951. The company was forced to abandon its asbestos fibre cement business in the late 1970s due to product liability. This forced it to develop a non-asbestos product, which it has marketed since the mid-1980s in Australia and NZ. The company began manufacturing the new product in the US in 1989. More recently, JHX has entered the Philippines.

JHX manufactures cellulose fibre cement products such as siding and backerboard products, mainly for residential applications. Cellulose fibre cement is non-asbestos fibre cement. JHX is the largest, lowest-cost and most profitable producer of cellulose fibre cement in the United States. The company has canned its US fibre-reinforced concrete pipes businesses, but still produces concrete pipes in Australia.

JHX's key differentiating factor is its unique and proprietary technology in manufacturing cellulose fibre cement. JHX developed the technology when it was forced by health concerns to cease production of asbestos fibre cement more than 20 years ago. While others also now manufacture cellulose fibre cement, none has managed to take the product as far as JHX. The company continues to aggressively invest in R&D to enhance its technology, lower costs and expand the product range.

Customers: major building contractors and distributors. Competitors: Australia - CSR and BGC produce cellulose fibre cement. The product also competes in Australia with brick, wood-based products, masonry and steel. US Competitors - a few smaller competitors produce fibre cement. The product also competes with vinyl, wood-based products, bricks, masonry, steel and gypsum. In Asia ex-Japan, there are many asbestos fibre cement producers.