Hi Seano, Even though I appreciate your post, I think it is...

Hi Seano,

Even though I appreciate your post, I think it is important to note that Brickworks isn't the only block manufacturer operating in Australia. Austral Masonry, National Masonry and Adbri to name a few.

In my opinion, it doesn't make sense to me that Brickworks wouldn't want this JV to go ahead though as I've previously stated, we don't actually need them... Just enough blocks to build 10 houses = performance milestone.
Upon saying that, here's a few things to consider:
1. It guarantees that BKW blocks will be used in the Australasian markets once the HX is fully operational/commercially viable.
2. Brickworks, through their subsidiary Horsley Park Holdings, is a cornerstone investor in FBR. The Fastbrick Australia JV means that BKW will have far more control over their 6.2million shares held, thus potential for sizable profit on two fronts.. Selling their shares and JV profit.
3. If it's not BKW, it'll be either one of the aforementioned AUS manufacturers or WB. They definitely don't want WB to enter our market.
4. Given BKW's recent corporate presentations, they're shifting their prioritization to development over brick manufacturing as the operating costs (particularly energy) for their Australian plants are getting out of control, with no foreseeable assistance from the Government. What better way to enter the market than by utilizing a machine that lays your blocks and then you handle everything else on the development front.

The WaaS will always be a shared profit between the block manufacturer and FBR... Unless of course FBR want to start manufacturing their own blocks.. Which seems impractical, inefficient and will slow their potential expansion of DST for other applications.

All my own opinion of course.