Qld watchdog suspends licence of construction giant

The construction watchdog has suspended the licence of the largest glass processor in Australia because of concerns about its finances.

The construction watchdog has suspended the licence of one of Queensland’s biggest building supply companies because of concerns about its finances.

The Queensland Building and Construction Commission temporarily halted the licence of Viridian Glass because of its failure to meet minimum financial requirements. known as MFR.

Viridian, which had branches in Sydney, Brisbane and Melbourne, is the largest glass processor in Australia working in the residential, commercial and apartment sectors.

Building materials giant CSR sold the business in 2018 to private equity firm Crescent Capital Partners. Viridian has struggled with competition from cheaper specialised glass imports from Chinese and Japanese manufacturers.

The company merged with SOLOS Glass in September combining its sales, marketing and manufacturing operations into the one business.

Veridian was licensed by the QBCC to carry out building work worth up to $240 million year each, putting it in the top category of building sector companies in the state. The company was contacted for comment about the licence suspension.

A worker at Viridian’s Canberra factory.

According to the company’s latest financial report lodged with the Australian Securities and Investment Commission (ASIC), the company made a loss of $26m in 2020 compared to a profit of $90m the previous year. Revenue dropped from $268m in 2019 to $151m last year.

The company signed a debt financing facility with Scottish Pacific Finance for $14m last year, which can be drawn upon until next year.

The QBCC has since 2019 moved against scores of construction firms because of concerns they do not have the financial strength to continue operating in Queensland.

Nearly 100 builders across a range of industries have had their licences suspended for failing to submit financial information.

The licence of engineering giant Laing O’Rourke’s Australian arm was suspended in March 2019 after the QBCC said it was concerned about its financial viability. The licence was later reinstated after Laing O’Rourke injected $32 million into its local operation.

Construction giant Lend Lease Engineering, which had been working on the $650 million Kingsford Smith Drive upgrade, also had its building licence briefly suspended.

A QBCC spokesperson said the glass glazing and aluminium licence of Viridian Glass had been suspended on October 27 for failing to meet minimum financial requirements. The spokesperson said annual financial reporting helped to ensure the financial wellbeing of those working in the industry. About $1.4 billion of working capital has been injected into the sector since the introduction of the regulation in 2019.

“This helps to ensure that other industry participants and home owners can have confidence when interacting with them,” Licence suspension decisions by the QBCC can be reviewed.