CSR allegedly sought to raise prices for its insulation products by restricting supply to a major distributor. The move was intended to protect its profit margins but could result in long-term reputational damage and legal consequences.
Consolidated Energy, an insulation distributor based in Perth, has taken legal action against CSR. It alleges that CSR used its dominant position in the market to drive up the wholesale price of Bradford ceiling batts during 2021 and 2022. CSR, one of Australia's largest suppliers of building materials, was acquired by France's Saint-Gobain in 2024 in a $4.3 billion deal, ending more than 60 years as a listed company.
According to court documents, CSR told Consolidated Energy it would reduce or limit supply unless it agreed to substantial price increases. The dispute involves three separate price hikes. CSR argues that these were necessary due to global supply chain issues and increased input costs from the COVID-19 pandemic and energy price shocks caused by the Russian invasion of Ukraine. Consolidated Energy claims the increases were enforced through ongoing threats to supply, giving it little chance to negotiate.
CSR denies any wrongdoing, stating that the price increases were formally negotiated. It says its insulation division had absorbed cost pressures until mid-2021, but by October that year, it had become unfeasible to continue supplying under the existing terms. Despite this, CSR told shareholders that demand remained strong, and both insulation volumes and operational efficiency had improved during the period.
This legal case reflects broader challenges facing Australia's building materials sector, where supply shortages, increasing costs and competitive pressures are all converging in the post-pandemic recovery. If the court rules in favour of Consolidated Energy, it could reshape expectations for how major suppliers engage with distributors and how market power is regulated in times of economic stress.
