James Hardie to sell Chilean cement business

MELBOURNE - Building products company James Hardie Industries Ltd will sell its Chilean fibre cement business for US$15.8 million ($23.72 million).

The company said it would sell its Chile Fibre Cement business to Compania Industrial El Volcan SA for a mix of cash and assumption of external debt.

James Hardie chief executive Louis Gries said the sale would take effect immediately and would not result in a profit or loss in the company's accounts.

"There are no downsides to this sale," he said.

"We received a fair offer and we expect the operation will continue to be a good business for the new owners."

Mr Gries said the company's Chilean operations, launched in 2001, had been a success but no longer fitted with James Hardie's strategy for future growth.

"The sale enables us to focus our efforts and resources on the opportunities in North America, Asia Pacific and Europe for capitalising on our unique manufacturing technology and differentiated, value-added products," he said.

James Hardie shares ended at A$7.60 ($8.45) on Friday.

- AAP