Steel & Tube upgrades processing facilities, sells old factory for $8.4 million

Monday 7th December 2015

Steel & Tube Holdings, New Zealand's biggest steel distribution company, has sold its former processing facility for $8.4 million having shifted manufacturing to a new purpose-built site in Auckland.

The Petone based company will record a $5.2 million gain from the sale in its results for the six months ending Dec. 31 this year, with the deal due to settle on Dec. 22, it said in a statement. The company didn't identify the buyer.

Steel & Tube moved out of the facility, on Bowden Road in Auckland's Mt Wellington, in September. A company spokesperson told BusinessDesk Steel & Tube "has been on a programme of upgrading our facilities over the past two years" and the sale was part of this. It now operates from a purpose-built processing hub in Highbrook, Auckland.

The steel products maker has been on an acquisition drive in recent times, buying Aquaduct NZ out of receivership for about $8 million cash in August, a month after it agreed to acquire fastener maker Manufacturing Suppliers for $32 million in cash and scrip. It also acquired Tata Steel (Australasia) for $28.1 million, renaming it S&T Stainless, in April last year.

The shares last traded at $2.18, and have dropped 25 percent this year.

BusinessDesk.co.nz

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