Australia’s three largest insulation makers Fletcher Building Ltd (ASX:FBU), CSR Ltd (ASX:CSR) and Knauf are seeking government compensation for more than $50 million of unused insulation material. That’s according to the Australian Financial Review.
Fletcher Building says it will consider legal action if negotiations fail. Fletcher has written of $14 million in one off costs and CSR, $23 million.
The three manufacturers ramped up production and imported products after the federal government announced it would spend $4 billion insulating houses, but scrapped the program a year later.
In the first six months of the 2011 financial year, Fletcher Building posted a $129.8 million net profit.
