Fletcher will fight regulator over Gib rebates

Winstone said it discontinued the use of the rebates in question back in 2022 - but is still likely to get taken to court. Photo / Getty Images

Fletcher Building says it will fight legal proceedings brought by the Commerce Commission over rebate structures by its unit, which makes Gib.

The listed construction materials firm said today that the regulator accuses its Winstone Wallboards unit of breaching the Commerce Act and will file proceedings by the end of October.

Winstone said it discontinued the use of the rebates in 2022.

In the same year, the company faced scrutiny after Gib shortages pushed up the construction price.

Fletcher said the commission is wrong because, during the building products market study, the regulator found that such structures did not reduce competition.

“As the commission concluded in 2014, we are confident, regardless of the presence of rebates, that our customers choose Winstone Wallboards’ products because of their quality and range, along with the service we provide.”

The dual-listed building giant announced its 2024 financial year results on Wednesday. It recorded a $227 million net loss, down from an after-tax profit of $235m in 2023.

The building products unit, which Winstone Wallboards falls under, posted a revenue decline from $1.4bn to $1.3bn.

That unit’s earnings before interest and tax fell 34% from $215m to $143m.

However, the company said Winstone and Laminex had made market share gains.

The company also said on Friday that it was aware of media reports that Western Australian builder BGC would file a claim against it over its Iplex pipes division, but it has not received the claim yet.

Fletcher also faces a class action from homeowners over the same leaky-pipe issue.

Earlier in the week, the firm appointed a new chief executive, Andrew Reding, but is yet to appoint a chair.

-BusinessDesk