Wagners has taken a cement buyer to court.
Wagners has taken a cement buyer to court. Contributed

Wagners heads to court over Boral cement dispute

TOOWOOMBA company Wagners will take a major buyer of its cement to the Supreme Court after failing to resolve a pricing dispute.

Wagners last month revealed it had suspended its current contract with major competitor Boral, after the latter claimed it had received a far better price offer for the same product.

The publicly-listed company told its shareholders yesterday through a release on the Australian Stock Exchange that it had failed to resolve the matter with Boral, and would now head down the path of litigation.

"As the parties have been unable to resolve the matter, the company has now filed a statement of claim in the Supreme Court of Queensland against BLD seeking a determination through courts of the matters currently in dispute," the release said.

Wagners CEO Cameron Coleman told The Chronicle last month the decision to suspend the agreement was the right choice, saying the company had serious issues with the pricing notice from Boral.

The March decision caused Wagners' share price to plummet from $3.27 to just over $2, but it has stabilised in recent weeks.

The company also downgraded its earnings before interest and tax for financial year 2019 to between $25m and $28m, adding that the overall impact is expected to be $10 million.

This is half what the company expected last month.



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