‘Business as usual’ at Metricon, says acting CEO Peter Langfelder

Metricon says it’s ‘business as usual’ for the under-pressure building giant, firmly denying any risk of financial collapse.

The fragile state of the home-building industry is under political scrutiny, with Metricon holding talks with the Andrews government and Scott Morrison flagging his concerns about the sector.

The company on Thursday ­insisted it was business as usual after holding meetings with Victorian Treasurer Tim Pallas. The nation’s largest home builder has been the focus of concerns for months despite efforts to dispel rumours about its finances.

The Prime Minister said relevant federal ministers had been in contact with Metricon to help work through the issues it was facing. “The priority here is to ensure that people get their homes built, sites remain open and that the company is able to get through these difficulties,” Mr Morrison said. “Both the Victorian government and the federal government obviously take the matter very ­seriously. There is over $2bn worth of housing work being done by Metricon and that is people’s dreams, their homes.”

The building industry has been hit by rising costs and delays, ­although the private firm insisted it was not in financial trouble and its projects were on track following the recent death of co-founder and boss Mario Biasin.

Acting chief executive Peter Langfelder said it was “business as usual” following renewed concerns about the company’s financial stability. “This is an extremely difficult time for our business; we’ve just lost the co-founder of our business, and we’re dealing with the grief,” he said.

“Our business has been very strong for 45 years and will continue for a long time to come. ­Metricon has long-term viability, we’ve got a strong history of performance, all the contacts we have in place are profitable.

“Everything is completely up to date, we have an incredibly strong management team and fantastic staff, and trades and suppliers who have been loyal with us for many years.

“We have the support of our banks … all our trades paid for today, on time and in full … and all our suppliers were in the same boat. All I can say is we remain strong, and to please bear with us as we go through this grieving ­period.”

Metricon told Mr Pallas that it had paid all its trade creditors “in full and on time” and expected this to continue.

Mr Langfelder said the government was engaging with the industry. “I believe they’ve been in contact with over a dozen builders over the last few days,” he said.

“The industry obviously has had some tough times, you know, with Covid; like many industries, there have been delays.”

Following Thursday’s meeting, Mr Pallas said the Victorian government welcomed the opportunity to meet with Metricon, and would continue to talk to the company and sector about factors ­affecting the industry.

“We understand the pressure on builders on the eastern seaboard due to increases in costs, and the impacts this is having on the construction industry and residential clients,” Mr Pallas said.

“The government will continue to work constructively with the industry to help address these challenges.”

The Andrews government has $195m worth of contracts with Metricon as part of its $5.3bn ­social housing package.

“Metricon is one of several partners in our Big Housing Build delivering high-quality social and affordable homes across the state, and this unprecedented program of work is on track,” Mr Pallas said. “I was shocked and saddened to learn of Mario Biasin’s passing. On behalf of the government, I ­extend my condolences to his family and his Metricon colleagues, and acknowledge his significant contribution.”

Metricon builds homes in Victoria, NSW, Queensland and South Australia.

It was forced in March to dispel rumours of financial troubles and a number of industry players said that the company had been dealing with issues related to its senior lender, the Commonwealth Bank.

It held talks on Wednesday with the Sayers Group, which has been tapped to help find a way forward for the Metricon empire, senior industry sources said.