Ann: FBR and Brickworks form joint venture, page-171

A few possibilities:

BKW provides and develops a guaranteed product for FBR (Customized Blocks) at a significant cost (Retooling of manufacturing plant and significant R & D)
BKW introduces FBR to a number of clients and ultimately the JV signs a binding deal with a large Australian builder for a number of new builds. These building contracts underpin a new financing deal for the manufacture of Hadrians.
FBR alone (without significant share dilution) could not provide the collateral for hadrian financing, BKW provides collateral for financing a number of New Hadrians at a reasonable interest rate.
BKW has acquired US' fourth biggest brick manufacturer this purchase gives FBR an introduction to the US market and several prominent builders.


The Joint venture provides FBR with a reputable partner across several markets, new building contacts globally and collateral to finance its operations going forward.The revenue split is unknown I wouldn't begrudge BKW a fair share of the revenue as they have potentially committed millions in retooling of its factory (not to mention R & D) 3 years isn't a long duration and I get the picture that whilst Australia is a nice start the main game is the larger continents (Europe, North America) and After the initial 3 year joint venture duration the revenue splits can be re-negotiated.

With this Joint venture FBR gets to establish its first market and expand exponentially.