FBU
24/09/2014 11:40
GENERAL
REL: 1140 HRS Fletcher Building Limited
GENERAL: FBU: Exit of Australian copper tube manufacturing
Fletcher Building to exit Australian copper tube manufacturing
Auckland - 24th September 2014
Fletcher Building Limited today announced it will exit the copper tube
manufacturing business in Australia which will result in the closure of the
Crane Copper Tube (CCT) factory in Penrith. Manufacturing and domestic
trading activity is planned to cease by December 31st 2014 with a transition
out of export trading likely to be concluded within 18 months.
The decision to cease trading and close the Penrith factory has been made
only after an exhaustive analysis of options to restore profitability. CCT
has been unprofitable for a number of years due to factors including
manufacturing overcapacity of copper tubing for plumbing requirements in the
Australian market, the increasing substitution of copper tubing with other
materials such as plastic composites, and increased import competition.
Fletcher Building Chief Executive Officer Mark Adamson said the decision to
cease trading was not made lightly. He wished to specifically acknowledge all
CCT employees whom in recent years have been relentless in their efforts to
reduce operating losses. However, despite these efforts, CCT was unable to
operate profitably.
This decision will affect 108 roles with the majority based at the Penrith
site of Crane Copper Tube.
"Our priority right now is to do the right thing by our people. I realise
this is a particularly difficult time for our employees and we are committed
to ensuring any potential opportunities for redeployment within Fletcher
Building are fully explored. Where that is not feasible, we will support our
employees through the transition to alternative employment," Mr Adamson said.
The Penrith site will remain in Fletcher Building ownership. Tradelink, a
Fletcher Building business that sourced copper tubing from CCT has secured
alternative supply. No other Fletcher Building businesses are impacted by
the decision to close Crane Copper Tube.
Fletcher Building expects to record a significant expense of up to NZ$19
million in the financial year ending 30 June 2015, reflecting the costs
associated with the closure of the business.
For further information contact:
Philip King
Group General Manager
Investor Relations and Capital Markets
Phone: +64 9 525 9043
Mobile: +64 27 444 0203
Ends
End CA:00255654 For:FBU Type:GENERAL Time:2014-09-24 11:40:11
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
