Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fletcher Building sells CSP galvanised steel unit to Perry

Fletcher Building sells CSP Coating galvanised steel unit to Perry Group

By Paul McBeth

Jan. 4 (BusinessDesk) - Fletcher Building, the country's biggest listed company, is to sell its CSP Coating galvanised steel unit to Hamilton-based Perry Group as it looks to replace some of its treated metal products with imports.

Perry Metal Protection, a subsidiary of the family-owned group, has lodged an application with the Commerce Commission to buy the Fletcher unit for an undisclosed sum, and will sell an unnamed unit to stop it from gaining a monopoly in galvanised steel in the South Island. Galvanising is the process of immersing steel in molten zinc to create a protective layer.

The acquisition comes after Fletcher put the unit on the block in July last year, and will give Perry new plants in Auckland and Christchurch.

Fletcher's underperforming steel business has indicated it "will import certain pre-galvanised products that are currently galvanised at CSP," the application said. Local galvanisers compete indirectly with those imported products, according to the application.

The construction company carved up its steel business last year, adding its long steel and distribution units, which include CSP, with its concrete unit to create a new infrastructure segment, and shifting its coated steel business under the building products division.

Fletcher's steel unit posted a 42 percent decline in annual earnings to $48 million on a 5.3 percent fall in sales to $1.15 billion. That was about 13 percent of Fletcher's total revenue.

If Perry isn't cleared by the antitrust regulator to buy the Fletcher business, the construction company will sell the unit to another party, the application said.

Perry's main interest is in CSP's Auckland operation, which it plans to use to create efficiencies with its recently built plant in Te Rapa, Hamilton.

The Hamilton-based group's galvanised steel business operates plants in Auckland, Hamilton, Tauranga, Wellington and Christchurch.

Perry Group holds interests in property projects in the central North Island, dairy farms, quarries, and plumbing supplies.

A decision on the clearance application is expected on Jan. 29.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news