Sharechat Logo

Mercer shares tumble after final loss from Fonterra's collapsed silo an estimated $20M

Tuesday 14th November 2017

Text too small?

Mercer Group shares dropped 17 percent after the stainless steel fabricator said Fonterra Cooperative Group's final loss from the collapse of a silo it designed and supplied was $20 million.

The company's Mercer Stainless division designed and supplied a silo to TetraPak that collapsed at Fonterra's Edendale factory in September 2016.  At the time, Mercer said the loss could be as high as $45 million. It also said it has professional indemnity and public and products liability insurance but that cover would depend on the findings of the investigation and the extent of its liability, if any, as well as the amount of cover and any relevant exclusions. 

Mercer said no formal claim has been made by any party against Mercer Stainless to date. "Liability as between relevant parties has not yet been determined and the investigation is continuing, it said.

The stock dropped 6 cents to 30 cents, having shed 5.3 percent so far this year. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report