Steel & Tube Holdings Limited (NZX: STU) is to appeal the level of a fine imposed by the High Court last month in relation to its steel mesh.
It follows a decision by the Commerce Commission to also appeal the High Court decision. Steel & Tube has carefully reviewed the decision and believes the High Court erred in setting the fine and that the fine is excessive.
At the time the original decision was released by the Auckland District Court, Steel & Tube apologised to its customers, shareholders and staff for the historic breaches of the Fair Trading Act prior to April 2016 and stressed that the breaches were unintentional.
Both the Ministry of Business, Innovation and Employment and the Structural Engineering Society of New Zealand have indicated that homeowners should not be concerned about the safety or ductility of steel mesh in their homes. The Insurance Council of New Zealand also recently reassured homeowners they should not be unduly concerned about insurance claims in respect of homes containing steel mesh from Steel & Tube.
Steel & Tube will not be commenting further at this stage while the appeal is before the Court.
Steel & Tube CEO
Tel: +64 27 777 0327
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