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Friday 26th June 2009 |
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Fletcher Building, the nation’s biggest construction and building materials company, said its Laminex unit will shutter a medium density fibreboard plant in Western Australia because of a downturn in demand.
MDF manufacturing in Australia will be consolidated to a larger and more modern plant in Gympie, Fletcher said in a statement. The Welshpool, Perth factory, which produced MDF for the local market and for export to Asia, was a victim of overcapacity in the industry, the company said. The plant employs 114 people.
Output of MDF will cease at Welshpool on July 24 and manufacture of other products at the site such as veneers, Low Pressure Laminate), and Process Panels and bearers will relocate to other Laminex sites in the next three to six months, Fletcher said.
In March, Fletcher said it would focus on cost control and preserving cash this year in the face of weak demand, particularly in the U.S. and Australia. The company posted a 27% slide in first-half profit in February, reflecting the impact of the global downturn on demand for building products and construction.
Shares of Fletcher slipped 0.2% to $6.38 today and have climbed 11% this year.
Businesswire.co.nz
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