Fletcher Building expects $20-$23 million loss on sale of Reinforcing and Wire business sale
Tuesday, 28 April 2026
Construction giant Fletcher Building has struck a deal to offload its Fletcher reinforcing and wire business to Singapore-owned United Industries for $15.7 million.
The move is part of a turnaround plan to restore the company, which has disappointed shareholders in recent years following huge losses from large construction projects which did not go to plan.
But while the sale price of $15.7m might seem like a boost to the coffers, it comes with a stinging caveat: Fletcher expects to swallow a loss of between $20m and $23m once the ink is dry.
In an announcement on the NZX sharemarket on Tuesday morning, managing director and chief executive Andrew Reding said: “This divestment is consistent with our strategy to simplify the group and maintain a clear focus on the return on invested capital that our business units generate.”
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He said Fletcher Reinforcing and Wire was a well-regarded business with strong brands.
However, he said: “It is not aligned with our targeted return profile, and we did not see a clear path for it to achieve satisfactory levels of contribution within an acceptable timeframe.”
Fletcher Building shares have performed very poorly in the past five years.
In August 2021, they were selling for $7.70, but have since fallen to just $2.77.
It’s troubles date back to big losses, which it posted in 2018 due to cost overruns on 16 large construction projects including the SkyCity International Convention Centre in Auckland, and Christchurch’s Justice Precinct from which it is yet to recover.
The convention centre remains a source of potential future pain for the company, as SkyCity is suing it for $330m for the late completion of the building, which was gutted by a massive fire in October 2019.
The convention centre finally opened in February this year.
A new chief executive was brought in to turn the company around, but he was replaced by Reding in late 2024.
United Industries is a New Zealand manufacturer of steel roofing and reinforcing products owned by Singapore’s Wire Plus. It is also a distributor and supplier of steel and timber products.
The sale of Fletcher Reinforcing and Wire is not the only sale by Fletcher Building this year.
Earlier this month the Overseas Investment Office approved the sale of Fletcher Construction to Vinci Construction, and the Commerce Commission has also waved the transaction through, Fletcher Building told the NZX this morning.
In January, the local construction giant announced it had entered into a binding agreement to sell its construction division to French multinational Vinci Construction for at least $315.6m.
Correction: A correction has been made to the headline - the business being sold is called Fletcher Reinforcing and Wire