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Steven Joyce

23 January, 2013

New Zealand to benefit from $40m deal

Economic Development Minister Steven Joyce has welcomed the introduction of a global building supplies giant to support the Christchurch rebuild, which could see long-term benefits for New Zealanders.

The world’s second largest building supplier, Knauf Plasterboard— along with major New Zealand manufacturer, Winstone Wallboards — have been awarded Government procurement contracts to supply an estimated $40 million worth of plasterboard systems for the residential rebuild effort.

“The introduction of Knauf into the New Zealand market will not only save the government up to 6 per cent in plasterboard system costs for the residential rebuild, it also the potential to provide benefits to New Zealanders over the longer-term,” Mr Joyce says.

“Having Knauf set up shop in New Zealand will see increased industry competition that will provide consumers with more choice and could potentially drive down prices.

“Additionally, if Knauf is successful in penetrating the market, the savings could even be higher.”

The contracts will cover plasterboard and associated fasteners, adhesives, and jointing compounds being used in the Earthquake Commission and Southern Response Earthquake Services Limited reconstruction programmes.

Builders working on these programmes, that are paid on behalf of the Government by the Earthquake Commission (EQC) and Southern Response Earthquake Services Limited (SRESL), will be the buyers of the these products.

The Ministry of Business, Innovation and Employment ran an open and competitive tender process. These two companies were selected over seven other bids because they provide the optimal mix of value for money, capability and capacity.