Steel mill grinds to halt

A major equipment failure at Fletcher Building's Pacific Steel mill at Otahuhu, South Auckland, will close the plant for up to three months, but is not expected to disrupt supply .

The failure, in the electric arc furnace transformer, occurred on Saturday.

"Full replacement of the transformer had been scheduled for early next year and the company is still investigating whether delivery of this new transformer can be advanced," Fletcher Building said.

Pacific Steel's rolling mill and wire mill were unaffected and remained in full production.

Stock levels and alternative supply arrangements meant there should not be significant disruption to customer requirements, the company said.

The plant failure was not expected to affect the company's financial results, it said.

- NZPA