Why is this ASX All Ords share plunging 30% on Monday?

The Calix Ltd (ASX: CXL) share price is having a day to forget on Monday.

In morning trade, the ASX All Ords share was down as much as 30% to a 52-week low of $1.65.

The environmental technology company’s shares have recovered slightly since then but remain down by 26% at the time of writing.

Why is this ASX All Ords share crashing?

Investors have been rushing to the exits this morning after the company announced that the Leilac-2 project will move to another Heidelberg Materials’ site following a decision by Heidelberg Materials to end clinker production at its Hanover cement plant.

The release notes that Heidelberg Materials has attributed the decision to shut down clinker production in Hanover to a “substantial decline in cement sales following weak construction demand in Germany due to the current economic environment.”

Calix and its subsidiary, Leilac, are currently working with Heidelberg Materials to identify a suitable new site for the project as soon as possible.

This is a bitter blow for the ASX All Ords share. It notes that Leilac-2 is well advanced and was on track for construction in 2024.

Leilac-2 has a modular design that aims to demonstrate an efficient, economic and scalable solution for the cement and lime industries to capture their unavoidable process emissions and provide flexible and future-proof fuel optionality.

The ASX All Ords share’s managing director and CEO, Phil Hodgson, said:

Current macro-economic environment realities have resulted in what is undoubtedly a difficult decision for Heidelberg Materials, and our thoughts and best wishes are with those whose jobs will be impacted by this decision.

We will work closely with Heidelberg Materials and our Leilac Consortium partners on the relocation options. Once chosen, we would expect around six months additional engineering work associated with site integration specifics. The Leilac-2 module is basically ready-to-build, with long lead items already being procured, and we look forward to continuing to work with Heidelberg Materials and our Leilac consortium partners to bring the Leilac-2 project to a successful conclusion.

The post Why is this ASX All Ords share plunging 30% on Monday? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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