Fletcher Building has announced that, coming out of its ongoing strategic review, its Australian Division will be dis-established as a standalone division, with its operating businesses integrated into two new trans-Tasman divisions:

• Light Building Products: includes most of Fletcher Building’s New Zealand building products businesses (Comfortech, Winstone Wallboards, Iplex, Laminex and Wood Products), now combined with Oliveri Australia, Iplex Australia, Laminex Australia and Fletcher Insulation from the former Australian Division. Hamish McBeath, previously Chief Executive of New Zealand Building Products, will lead this division.
• Heavy Building Materials: encompassing its concrete-related businesses (Winstone Aggregates, Golden Bay Cement, Firth Concrete and Humes), the New Zealand steel businesses, and Australia’s Stramit. Thornton Williams, formerly Chief Executive of the Concrete Division, will lead this division.

Fletcher Building’s other three divisions (Distribution, Construction and Residential & Development) and executive team roles remain unchanged.

Alongside this restructuring, a further review of the Group’s corporate structure has been carried out and it is anticipated that this will deliver $15 million annualised savings in structural costs in the short term (which are in addition to the $200m of cost out targeted for FY25). The review is ongoing, and the Group will continue to identify opportunities for further material cost reductions.

Group CEO and managing director, Andrew Reding, said: “Fletcher Building is strategically positioned in the growing markets of Australia and New Zealand, where our businesses target leadership in segments with attractive long-term fundamentals. Our operating companies are deeply embedded in their local markets, giving them strong insight into customer needs, agility in decision-making, and the ability to respond quickly to changing market dynamics.

“Since our interim results, our businesses have seen no significant improvement in market conditions, with market volumes continuing to be challenging due to macroeconomic uncertainties and the lack of any material momentum in the recovery of New Zealand’s economy. Our businesses operating in the commercial and infrastructure segments continue to face reduced or deferred spending, partly due to recent weather events and reduced sub-division activity. Meanwhile, residential property sales also remain at subdued levels, reflecting lower levels of liquidity across the market,” he added.