Eureka Tiles, which has two plants in Ballarat employing about 90 people, is Australia's largest tile producer.

The company currently produces one million square metres of unglazed and glazed floor tiles every year.

Austral paid $12.75 million for the company, including $9.7 million for land, plant and equipment.

While The Courier believes some jobs in Ballarat may be in jeopardy, Eureka Tiles plant manager David Ebbs yesterday said the sale would provide more capital and security to the local operations.

Mr Ebbs said it was unlikely any changes would be made to the businesses core services.

"I think this will be a positive thing for Ballarat."

Two senior staff members have announced they will no longer work for the company.

Brickworks managing director Lindsay Partridge said the acquisition of Eureka Tiles would compliment its recently completed unglazed tile plant at Punchbowl in New South Wales.

"The combination operation will have sales in excess of $25 million, giving it a critical mass and allowing Brickworks to take advantage of increased economies of sale," Mr Partridge said.

He said there were opportunities for Australian tile manufacturers to spread their wings.

"With over 80 per cent of the Australian tile market serviced by imports, there is an opportunity for an Australian producer to gain market share."