Fletcher Building restructures Australian division, expects savings

Fletcher Building has announced the disestablishment of its Australian division as a standalone entity, following a strategic review.

The company's operating businesses in Australia will be integrated into two new trans-Tasman divisions: Light Building Products and Heavy Building Materials.

The Light Building Products division will include Fletcher's New Zealand building products businesses, as well as Oliveri Australia, Iplex Australia, Laminex Australia, and Fletcher Insulation from the former Australian division.

Hamish McBeath, the former chief executive of New Zealand building products, will lead this division.

The Heavy Building Materials division will encompass Fletcher's concrete-related businesses, New Zealand steel businesses, and Australia's Stramit.

Thornton Williams, the former chief executive of the concrete division, will lead this division.

As a result of the restructuring, Gareth O'Reilly, the chief executive of the former Australian division, will leave the company.

Fletcher Building's other three divisions and executive team roles will remain unchanged.

The company anticipates that a further review of its corporate structure will result in $15 million in annualised savings in structural costs.

This is in addition to the $200m cost reduction target for the 2025 financial year.