Fletcher Building Ltd has reached an agreement to create a 50-50 joint venture between its Fletcher Aluminium windows and doors business and Nalco Ltd.
Nalco managing director Ron Holden will become managing director of the new entity.
Fletcher Building chief executive Mark Adamson said it was proposed that the Fletcher Building manufacturing site in Auckland would close in the 18 months following formation of the joint venture.
He said Fletcher Building would fund its share of the capital expenditure to expand Nalco’s Hamilton manufacturing facility. The new entity will have two key manufacturing sites — an extrusion and powdercoating facility in Hamilton and a powdercoating facility in Christchurch.
In its first full year of operation the new entity is expected to have sales of $190 million.
The joint venture is expected to be formed by June.