Fletcher Building's house construction business will develop a new Auckland house-panel factory to make thousands of new residences, some for the Government's KiwiBuild.

Ross Taylor, chief executive, said in Sydney this morning that plans for the new venture were advancing.

"The factory will be built in Auckland. We've not chosen a site yet. We are already able to make KiwiBuild-style housing so we can respond to that," he said of the Government plan to build 100,000 affordable homes during a decade.

"Fletcher Living has developed a panelised solution that reduces duplex construction times from 22 weeks to nine weeks," a new presentation out today said.

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"The new market offer will reduce construction time, improve cost control around skilled trades, reduce defects and waste in a controlled factory environment and improve safety outcomes," the statement said.

Taylor said components for 300 to 350 homes could be built in the new factory annually.
The business is building more than 1000 homes annually, he said.

But Taylor refused to reveal more on big loss-making commercial construction contracts.

Referring to the NZ International Convention Centre and Commercial Bay which Fletcher Construction is building in Auckland, he said: "We remain within provisions. We are in confidentiality agreements with our customers so we're seeing them...how we described them in February."

- Anne Gibson travelled to Sydney with the assistance of Fletcher Building.