The company said it had previously told the market about complaints received against the Iplex Australia Pro-fit pipe product.
The complaints relate to leaks in homes, primarily built by group home builders in Western Australia.
“As previously advised to the market, Fletcher Building has been in mediation with stakeholders, including the Government of Western Australia, in relation to the development of a joint industry response to this issue,” the company said today.
A burst Iplex pipe in a Perth home. The homeowner said pipes had failed in a bedroom and a bathroom.
Fletcher Building expected the Government of Western Australia to make an announcement about the issue today.
“This announcement is expected to outline whether the Government of Western Australia will accept a joint industry response to this issue. This information is believed to be material information in respect of FBU’s ordinary shares and accordingly a trading halt in respect of that security is requested,” it said.
The trading halt is requested to stay in place until FBU makes its own announcement in respect of the Iplex Australia Pro-fit pipe product issues in response to that of the Government of Western Australia.
It is expected that the announcement from WA will take place today, with Fletcher’s announcement to be made after that.
This month, the Herald reported Perth leaky pipe victims had engaged lawyers to launch a class action against Fletcher Building’s Iplex Pipelines Australia.
Iplex pipes taken out of a Perth home after leaks.
Fletcher issued an NZX notice saying it would defend itself in the legal proceedings.
Australian law firm Baker McKenzie is bringing the case in the Federal Court of Australia on behalf of people who bought homes with polybutylene pipes made by Iplex.
The class action is against the Fletcher subsidiary which makes and supplies pipes that are alleged to be defective.
Those have largely been installed in residential properties in Australia.
The case is understood to allege that pipes manufactured with the Typlex resin have an unusual propensity for problems including crazing, cracking, rupture and leaks.
Victims have claimed the pipes are defective and do not comply with the statutory guarantee of acceptable quality under the Australian consumer law.
"That's the last of that s...." wrote a disappointed Perth homeowner after pipes manufactured by Fletcher Building's Iplex were removed from his home.
Ross Taylor, former Fletcher chief executive, has blamed pipe problems on poor installation.
The company went into a trading halt last year and established a $15 million fund while causes, resolution and industry solutions were developed.
Taylor said Fletcher was committed to helping the industry resolve issues.
Fletcher told NZX in June this year it was still taking part in mediated discussions with the Western Australian Government and many West Australian builders, including builder BGC.
Last October, Taylor dismissed as “sensationalist” BGC’s claim that it would cost least $750 million to fix failures.
He denied builder BGC’s financial estimate.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
