News: UPDATE 1-NZ's Fletcher Building says aware of reports about likely legal action against unit

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    (Updates with details, background throughout)

    Aug 22 (Reuters) - New Zealand's Fletcher Building (FBU) said on Thursday it is aware of reports that Australia's Buckeridge Group of Companies (BGC) intends to take legal action against its unit for plumbing failures at various homes in Perth.

    Fletcher last year said that nearly 1,500 of 15,000 houses constructed using pro-fit polybutylene plumbing pipes made by its unit, Iplex Pipelines Australia, had faced plumbing failures between mid-2017 and mid-2022.

    BGC, the biggest new home construction firm in Western Australia, built about 90% of the affected homes in Perth along with smaller peer Delstrat.

    "Iplex AU has received separate notification of that intention from BGC, but has not yet received any formal proceedings," Fletcher Building said in a statement.

    Last year, BGC said that Fletcher had delayed a recall of the pipes and undermined the severity of the situation. Fletcher, however, denied claims of any manufacturing defects in the pipes.

    BGC did not immediately respond to Reuters' request for comment.

 
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