A crisis meeting has been called between KiwiSaver provider Simplicity and Fletcher Building over impact GIB supply problems are having on its $35 million-worth of shares.
Last week, Simplicity's social housing arm sacked Fletcher Building as its plasterboard supplier for 550 homes due to slow delivery times, saying the company's hubris and lack of foresight had pushed some builders to the wall.
Simplicity owns $35 million of Fletcher Building shares on behalf of its members. The NZ Shareholders Association is joining the meeting as it has had ongoing concerns over the governance of Fletcher Building.
Simplicity's social housing arm, Simplicity Living, is now importing an approved plasterboard from Thailand. It has had 60 construction companies get in touch for advice on how to import plasterboard directly.
Fletcher Building says it will be another year before its new Tauranga factory comes online. It says it is working around the clock producing GIB, but nobody could see the scale of supply problems coming.
Fletcher Building chief executive Ross Taylor told Checkpoint that in 2019 they committed to building the GIB factory at Tauriko in Tauranga.