Building materials business Boral is actively seeking industrial land in Perth as it launches a significant expansion plan, aiming to boost its capacity by at least 50 to 60 per cent. This strategic move is positioned to help alleviate the city's acute housing shortage, driven by rapid population growth and a lag in new construction.
Expansion Targets Perth's Housing Pain Points
Boral, owned by SGH, is focusing on capturing a larger share of the residential construction market in Western Australia. This initiative aligns with the State Government's ambitious target of building 800,000 new homes in the Perth and Peel regions by 2050 to accommodate a booming population. Experts widely attribute the current housing crisis to a combination of insufficient new builds and swift demographic increases.
The company currently operates eight concrete batching plants across the Greater Perth area, supported by numerous quarries. Outgoing chief executive Vik Bansal revealed that Boral is poised to deploy substantial capital over the coming years to achieve this growth. "I'm bullish and optimistic about the Perth market . . . we know the market is going to be good," Mr Bansal stated.
Strategic Land Acquisition and Government Role
To facilitate this expansion, Boral is in the market for industrial land in targeted zones, with priority areas identified in the south-west (Rockingham) and south-east (Armadale) for new batching plants. Mr Bansal emphasised that the State Government can play a crucial role in accelerating development by ensuring timely infrastructure support.
"They've identified the land where the properties should go, which is smart, but they need to follow that up quickly with the infrastructure," he explained. "We can make sure the materials are available where the demand happens, but the faster they can get the infrastructure ready like road, electricity, water, sewage, the faster development can go."
National Expansion and Leadership Transition
Western Australia and Queensland are highlighted as Boral's key expansion markets. The Sunshine State's construction outlook is bolstered by preparations for the 2032 Brisbane Olympics, providing additional growth opportunities.
Mr Bansal, credited with significantly improving Boral's operational performance over the past three years, is stepping down as part of a planned succession. He will retain connections to the business as a non-executive director of SGH. Reflecting on his tenure, he said, "It's been an absolute privilege to run Boral over the past three years and to leave it in a very, very good place."
SGH fully absorbed Boral in 2024 after acquiring the remaining 28.4 per cent stake it did not already own, solidifying its control over the building materials firm.
