Strategy Case Study
JOINT VENTURE FORMATION
In March 2014, ASX listed Boral Limited combined their leading market positions in the Asia plasterboard market with NYSE listed USG Limited to form USG Boral. The business operates in approximately 15 countries from the Middle East to the Pacific Islands employing around 3,500 people. With USG’s global leading plasterboard technology, the Joint Venture proved to be a great strategic fit for both companies.
The practical establishment of the JV was a significant task requiring input from both shareholders and business leaders within the region.
Under the leadership of the Project Director and overseen by a Steering Committee, the JV was established through 21 workstreams. Each workstream was resourced by leaders from Boral, USG and the existing operating businesses. A consistent project management methodology was used to develop detailed action plans with monthly tracking and reporting. Communication and change plans were also implemented.
The JV was successfully setup up during the first half of 2014. The business has continued to grow markedly year on year.
With such a complex business and expansive footprint, the establishment of the JV required bringing together the strengths of each shareholder which was crucial to its initial and ongoing success. Rick in his capacity as Project Director did a splendid job delivering the required outcomes including ensuring the Steering Committee were well informed of key risks and issues at all times.
Frederic De Rougemont Chief Executive Officer USG Boral