Fletcher sets aside $15m for faulty pipe compensation
Simon EvansSenior reporter
Key Points
- Fletcher Building, listed on both the NZ and Australian stock exchanges, has upped its provisions to $15 million as it deals with the fallout from leaking pipes in 1200 new homes built in WA.
- The Pro-fit plumbing pipes sold by its Iplex business in Australia were taken off the market in mid-2022, and were used in 15,000 new homes built from mid-2017 to mid-2022, mainly in WA.
- Fletcher has made interim proposals with two WA homebuilders, BGC Group and Delstrat, for financial help as they deal with affected customers.
Fletcher Building has set aside $15 million to cover the costs from hundreds of complaints about leaks associated with a pipe product used in new home construction.
The Pro-fit hot and cold plumbing pipe – which belongs to the Trans-Tasman company’s Iplex business – is at the centre of 1200 complaints in Western Australia made between 2017 and last year.
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