Steel & Tube upgrades processing facilities, sells old factory
7 December 2015
Steel & Tube Holdings [NZX: STU] 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 book a $5.2 million gain from the sale in its results for the six months ending December 31 this year.. 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 company's shares last traded at $2.18, and have dropped 25% this year.