Tuesday, 19 February 2019


GENERAL: STU: Update regarding seismic mesh

29 Nov 2017 08:31NZX
Statement made by Mark Malpass, Interim CEO Steel & Tube

On 7 June 2017, Steel & Tube confirmed that the Commerce Commission had filed
charges against the company under the Fair Trading Act in relation to 500E
grade seismic mesh. The charges in regards to compliance with the testing
standard for seismic mesh relate to the application of testing methodologies
only, not the performance characteristics of the seismic mesh.

Twelve charges relate to the inadvertent use of a testing laboratories logo
at the bottom of the test certificates of SE62 mesh. Steel & Tube
acknowledged the mistake in March 2016 and immediately removed the logo.

The remaining twelve charges relate to the application of testing
methodologies in the applicable standard, not the performance characteristics
of the mesh.

Steel & Tube has been co-operating with the Commission to reach an
appropriate resolution of the charges and has entered guilty pleas to the

Steel & Tube takes quality and compliance very seriously and since April
2016, the company has had external accredited laboratories testing seismic

The company has also taken significant steps to enhance its quality and
product assurance systems.

These charges relate to historical matters that are before the courts and the
company cannot comment further.

The Commission has previously confirmed it has filed charges against two
other companies in relation to false and misleading representations about
seismic mesh. The Commission has also said previously that it expected to lay
charges against one other company, and that investigations continued into


Media contact: Tanya Katterns, S&T Communications Manager: 04 570 5048 / 021
573 874


There were significant interpretational issues with the standard for testing
seismic mesh. The ambiguities in the standard led to Steel & Tube calling for
a Government/industry review of the testing standard and in November last
year, the clarification that Steel & Tube had sought was issued by the
Ministry of Business, Innovation and Enterprise.

Clarification of the standard gives all seismic mesh manufacturers and
sellers certainty regarding how seismic mesh is to be tested to ensure it
complies with the standard. It also gives building owners reassurance that
all seismic mesh will now be tested in the same way.
End CA:00311125 For:STU    Type:GENERAL    Time:2017-11-29 08:31:26
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