Fletcher Building (the ‘Company’) has provided an update on the status of Golden Bay’s cement transport ship the Marine Vessel Aotearoa Chief (MVAC). This follows the Company’s announcement on 29 July 2024 that the MVAC, which is owned and operated by a third-party provider, was experiencing mechanical issues.
The Company is pleased to report that the issue with the MVAC has been resolved in an earlier timeframe than initially forecast. The vessel has now returned to service, having undergone the necessary checks with marine authorities.
When the issue became apparent, Golden Bay immediately engaged with its customers and enacted its contingency plans, which included implementing the use of alternative transport options to distribute cement and sourcing the use of alternative cement supplies.
Given the earlier return to service of the MVAC than initially estimated, the impact to the Company’s earnings is now expected to be at the lower end of the original assessment of between a $10 - $30million EBIT impact.
Golden Bay would like to express its thanks to its customers for their understanding while it worked to address the issue. The Company would like to also acknowledge the other cement suppliers that have supported it, via the supply contingency plans.
Authorised by: Haydn Wong, Company Secretary