FLETCHER Building has agreed to sell its Pacific Steel Group business for $NZ120million ($F187m).
In a statement to the NZ Stock Exchange, Fletcher said it had reached agreement to sell its subsidiary, with facilities in Otahuhu and Fiji, to BlueScope Steel.
The Engineering, Printing and Manufacturing Union said the Otahuhu mill employed 70 workers and expressed concern over potential job losses.
However, Fletcher Pacific Steel (Fiji) Limited manager Vishwa Reddy told this newspaper the agreement would not affect the Fijian market and also its workers.
Mr Reddy said Fletcher workers would be offered employment with the new owner.
Andrew Garey, the general manager of BlueScope subsidiary New Zealand Steel, also shared the same sentiments.
Mr Garey would not be drawn on the exact numbers, and said the process of re-employment would be worked through over the next two years.
Australia’s BlueScope is using its subsidiary, New Zealand Steel, to make the purchase.
Fletcher CEO Mark Adamson said the sale to a local player was good news.
“This is a home-grown solution that secures a sustainable future for the New Zealand steel industry,” he said.
Under the sale agreement $NZ30m ($F46.8m) will be paid initially, with a further $NZ30m ($F46.8m) to be paid once the Glenbrook facility in NZ is operational.
BlueScope will also buy working capital of the business, valued at $NZ60m ($F93.5m)
