News: Transpacific grounding to cost up to $20M

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Transpacific Industries Group Limited (ASX:TPI, NZE:TPI) has warned the grounding of its fleet is likely to cost up to $20 million.  

The waste management company was forced to ground its heavy fleet nationally in August in the wake of a fatal traffic accident in South Australia.

Transpacific says it now expects the impact of the grounding to lower its first half EBIT by between $18 million and $20 million.

CEO Robert Boucher has affirmed the financial impact is a one-time event and the company is addressing its policies and procedures to improve the
durability of its operations.  

Transpacific Industries Group reported a net profit of $28.9 million in the 2014 financial year.