Fletcher Building considers sale of its construction division assets
Photo:
supplied
Fletcher Building is considering the sale of its construction division assets
following a strategic review
of the business.
The company said it was exploring potential divestment options for its Higgins, Brian Perry Civil and Fletcher Construction Major Projects business units, including the appointment of financial advisers.
The company was testing the market, though no decisions had been made to sell, Chief executive Andrew Reding said.
"Given the quality and strong recent performance of our construction businesses, and the role they will play in New Zealand's growing infrastructure pipeline, we were not surprised to receive inbound interest for them, which has motivated us to test whether there are attractive divestment options.
"We will carefully consider the value of any options presented from this process before deciding whether to move ahead."
Last month Fletcher Building announced hundreds of millions of dollars of new restructuring and impairment costs.
At an investor day briefing it disclosed estimated losses for the current financial year between $573 million to $781m of significant items which will hit its full-year results to be announced in August.
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
2 hours ago
- RNZ News
Kiwi workers wanted: 'The north of Australia is a really good option'
Northern Territory industry leaders were hunting for Kiwi workers at an Auckland job expo over the weekend. File photo. Photo: AFP Australian companies say they are not trying to poach NZ's workforce, but anybody who does fancy upping sticks for 'Straya's Northern Territory is being fair dinkum promised a chunk a' change that would make your Kiwi colleagues mad as a cut snake. Northern Territory industry leaders were at an Auckland job expo over the weekend to extoll the virtues of the vast region of Australia. There were stalls looking to recruit police and corrections officers, hospitality workers, health professionals, tourism operators and construction and infrastructure workers. A number of Kiwis visiting the expo told Checkpoint the better pay and better work opportunities were tempting. But what will it mean for New Zealand's already declining workforce if they take up the offer? For Kiwis across the motu, it can be a dispiriting daily grind: apply for jobs, often receive no reply and when they do land an interview, queues of people are lining up for the same job. It can take hundreds of applications, and often many months, before something finally comes through. The unemployment rate in New Zealand is at a four-year high at 5.1 percent, so it is very competitive out there. But in Australia's Northern Territory, they are desperate for people to join their workforce and they have got Kiwis in their sights. On Saturday morning at Auckland's Manukau Due Drop events centre, the expo was bustling with hundreds of students, job hunters and people just looking for a change. They told Checkpoint finding a job in Aotearoa has become increasingly difficult. "I'm looking for other work at the moment and there's literally nothing out there, thousands of people applying for jobs that I wouldn't usually apply for. "A lot of people have applied for jobs you see 150 people have applied, 200 people and you'll still be waiting for an answer." The Northern Territory's allure lies in its higher salaries, more job opportunities and the possibility of buying a home there. "I'm renting a two-bedroom house here for $550 at the same time when I see my sister she's in Alice Springs she's renting a two-bedroom house for $350. "I feel really bad going into a job that pays so little, and I've studied so hard, where there's like a $20,000 difference if I start here or if I start there." Damien Charles from the Northern Territory Information and Communication Technology and Digital Services industry said there was a wider range of opportunities in the sector. A $30-40,000 pay bump also did not hurt. "Having listened to a number of people come through they're quite downcast about ICT and digital sector here in New Zealand, it's quite hard to get into the market even for people with existing skills and experience." Andrew Craven from the Northern Territory Police said they were looking for new recruits to join the police and experienced police who might want a change in scenery. First-year constables earn a salary of $111,000 compared to $83,000 here. After five years in the force that increases to $121,000 in Northern Territory, compared with $91,000 here. There is also a housing allowance of up to $34,000 for officers jumping the ditch. Craven said there were many similarities between the Northern Territory and New Zealand police forces. "We speak to the New Zealand Police a lot because we interview experienced police, particularly in the Northern Island, I think they have very similar problems." Dr Tanzil Rahman - Member of the Parliament of the Northern Territory for Fong Lim in Darwin's east - made the trip to New Zealand to help snag some Kiwi workers. He said the Northen Territory offered a different lifestyle, better pay, a higher quality housing market and a warmer climate. "We know that New Zealanders are keen on Australia and do move to Australia and if you're looking for meaningful work opportunities that are well remunerated than again the north of Australia is a really good option." But for some Kiwis, the grass was not greener. "Australia's way too hot and there's too much drama there," said one. "People don't realise that in New Zealand we look after our retirees a lot better than they do in Australia." "I was offered about 1.7 times about what I would earn here in New Zealand. But what I love here about people in New Zealand is the people and the culture. We moved here when I was young from South Africa, so I call New Zealand my home and I'll stay," said another "We've got the most beautiful scenery in the world, great people and a wonderful future I'd stay here," said a third. The Northern Territory job expos were held in Christchurch and Auckland over the past two weekends hosting jobs and information sessions for Kiwis keen to get a glimpse on life and work. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
2 hours ago
- RNZ News
Material change for the construction industry
With insolvency and job losses for construction businesses soaring , the government has announced it will make it easier for firms to purchase and use international materials for builds here in New Zealand. Professor John Tookey from AUT joins Emile Donovan to look at whether this move will bring down the high cost of construction. Photo: 123RF
RNZ News
5 hours ago
- RNZ News
Bremworth rebuilds Napier factory destroyed in cyclone
Bremworth is investing $6 million in restoring its yarn-making facilities in Napier. File photo. Photo: Bremworth Carpet maker Bremworth is rebuilding its Napier yarn plant which was destroyed in Cyclone Gabrielle , opening up 40 jobs. It had already been running a dyehouse onsite, but was now investing $6 million in restoring its yarn-making facilities. It used to employ about 150 staff at the Napier factory, but most of them lost their jobs when the floodwaters hit. For the past couple of years Bremworth has been importing yarn to bolster supplies from its Whanganui spinning plant. Bremworth chief executive Craig Woolford told Checkpoint it felt good to be coming back. "It's a great feeling. The staff they are just beyond themselves... everybody can see a really good outcome for this." The plant should be up and running by the end of October. Woolford said the hunt for staff was currently on, including re-recruiting those who lost their jobs after Cyclone Gabrielle. "We've had quite a positive response from a lot of those people. So where we've been able to, we've started that recruitment process with the people that have previously worked for us that are keen to come back." He said they had also had a great response from the wider community. "We've had a huge amount of people just turning up in the last couple of days looking for work." Cyclone Gabrielle destroyed most of the plant more than two years ago - Woolford said the damage was extensive. "There was about one and a half metres of water that went through the entire plant and you know most of our electrical equipment, all the electric motors, all completely flooded. All the machines were flooded." While the plant was shut, the company had to outsource much of their yarn making. "We've been buying it from places around the world. China, India, Pakistan, you know, all these different places, which is, you know, it got us through, but it's also come with its own issues. "The quality levels that we've got from these external providers hasn't been to the same level of quality we can manage ourselves in house." Woolford said by producing the wool in-house, they were getting better quality as well as saving on costs. "We will save between $3.50 and $5 a kilo if we do it ourselves in house." While they would love to see a higher demand for the product, Woolford said things were steady enough. "The fact that we'll be able to run two yarn plants... [24 hours a day, five days a week] shows that it's reasonably steady." He said wool carpet makes up for about 15 percent of the New Zealand and Australian soft flooring market, but with shifting demand the company was in the process of creating a synthetic carpet too. "Wool is I guess, at the higher end of carpet and a lot of people look at it and think it's a it's a big expense, and sometimes it is, so they opt for a synthetic carpet." Now three months out from reopening, Woolford said it felt great to be rebuilding, and wished they had done it sooner. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
