FBU
17/02/2016 09:43
JOINTV
PRICE SENSITIVE
REL: 0943 HRS Fletcher Building Limited
JOINTV: FBU: Fletcher Building announces JV with NALCO
Auckland, 17 February 2016 - Fletcher Building Limited announces it has
reached agreement to create a 50-50 joint venture between its Fletcher
Aluminium windows and doors business and NALCO. The new business will be
jointly owned by Fletcher Building and NALCO, with each having an equal
shareholding.
Fletcher Aluminium and NALCO will each contribute all of their business
assets to the new entity, including intellectual property, and all employees
of the two businesses will transfer to the joint venture. Ron Holden, the
current Managing Director of NALCO, will become Managing Director of the new
entity.
In the 18 months following formation of the joint venture, it is proposed the
Fletcher Building manufacturing site in Auckland will close. Fletcher
Building will be funding its share of the capital expenditure to expand
NALCO's Hamilton manufacturing facility. The new entity will have two key
manufacturing sites with an extrusion and powder coating facility in Hamilton
and a powder coating facility in Christchurch.
Fletcher Building Chief Executive Officer Mark Adamson said the joint venture
would create a strong competitor in the windows and doors market.
"Together, Fletcher Aluminium and NALCO will have a national network of
distributors able to offer excellent customer service and a top quality
product range to customers. It is a joint venture of strengths that increases
manufacturing capabilities and accelerates the introduction of new technology
to the New Zealand market", Mr Adamson said.
In its first full year of operation the new entity is expected to have sales
of approximately $190 million. The joint venture is expected to be formed by
June 2016 and is conditional on a number of matters including Commerce
Commission approval, if required.
End CA:00277773 For:FBU Type:JOINTV Time:2016-02-17 09:43:10
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