29 Jun 2012

Fletcher to close laminate unit in Spain

1:32 pm on 29 June 2012

Fletcher Building will close one of its two laminate making plants in Spain due to weak residential demand in the struggling country.

The plant is expected to close at the end of the year, affecting about 180 workers.

Fletcher Building's laminates and panels unit has struggled in the past few years under pressure from a shrinking construction sector globally.

The building products and construction firm says volumes in Spain have fallen by half in the past four years.

It will close its Bilbao plant and move all production to Valencia.

The move will result in $26 million in one-off costs but Fletcher Building expects it to save money over time, lifting pre-tax earnings in its Formica Europe unit by about $8 - $9 million in the second year.