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Fletcher Building Ltd (ASX:FBU) intends to disestablish its Australia division as a standalone, as part of a wider suite of structural changes brought on by an ongoing strategic review.
Businesses which formerly fell under the ‘Australia’ umbrella will now be integrated into 2 new trans-Tasman divisions: light building products – in which Oliveri Australia, Iplex Australia, Laminex Australia and Fletcher Insulation will join Fletcher Buildings New Zealand products business – and heavy building materials – which will bring together Fletcher’s concrete-related businesses with Australia’s Stramit and the New Zealand steel businesses.
Fletcher’s other 3 divisions – Distribution, Construction and Residential and Development – will remain unchanged.
Former Chief executive of the Concrete Division, Thornton Williams, will lead the Heavy Building Materials division, while former chief executive of New Zealand Building Products – Hamish McBeath – will head up the new Light Building Products division.
And the restructuring has resulted in another executive shift: with former chief executive of the Australia division, Gareth O’Reilly, set to leave Fletcher.
Alongside these changes, Fletcher is aiming to bank approximately $15 million worth of savings in the short term through a further review of the company’s corporate structure. This will add to the approximately $200M of cost out targeted for the 2025 fiscal year.
Managing director Andrew Reding said these changes would drive improvements and growth at the company.
“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,” he said.
“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.
“We want to leverage these strengths, evolving Fletcher Building into a more decentralised, high-performing portfolio company.”
Fletcher shares have been trading at $3.13.
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