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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news