I understand it was always the intention of CSR management...

I understand it was always the intention of CSR management post-demerger, to develop a focused building products company to operate mainly in the domestic market.

This is an appropriate strategy. CSR has established iconic brands locally, an extensive national distribution network, as well as raw material supplies sourced here. It is more beneficial presently for the company to capitalise on these competitive advantages in its home market.

To access overseas markets on any reasonable scale is always fraught with risks. There are many cases of successful Australian companies from various industries experiencing difficulties when they have tried to expand into outside territories.

To operate in a foreign market exposes the company to a new set of market, regulatory and political risks , which could severely deplete the resources of the company. It also exposes the company to greater foreign exchange risks with the higher volumes of international dealings.
Given the precarious international economic situation currently, this is not an ideal time to even consider venturing offshore.

I believe CSR is on the right path in trying to strengthen and consolidate its Australian operations.


DO YOUR OWN RESEARCH.