My principle style is long and is based upon management. I have invested in BKW for a long time. I went back and found a person involved in the Bristile acquisition and the fact that LP actually wanted to know activity at each of the sites. This and other things informed me that he and the team really do an indepth research before investments.

Added to this they really seem to analyze the longer term benefits so these plant upgrades seems to be on the back of optimizing the cost structures. Reminds me of Sanitarium who kept developing a more automated production environment and did that as early as 2007.

The key issues for me was this nugget: "Major capital program across building products nearing completion."

Then supporting that this comment: "Capital expenditure was $56 million during the period, with the Company nearing the end of a significant investment program. The majority of major project spend was the construction of a new brick plant at Horsley Park in New South Wales."

The USA consolidation and upgrades are also being done. So whilst Australia is an expensive labour market USA has a cheaper market and yet they see the benefit of upgrades as they did here.

On the basis of constraints I believe that around $100 million of investment has been under perming and when the cycle turs back in favour there are significant profits to be generated by the Building Products division. So the 3 parts to this business are complimentary and in fact better than an entry via SOL in my opinion.