Wellington. 4 March 2016 - Brilliance Steel Ltd (Brilliance) and Euro Corporation Limited (Euro Corporation) have agreed to stop selling some steel mesh products while the Commerce Commission further investigates concerns that they may not comply with the Australia/New Zealand standard (AS/NZ 4671:2001).

Steel mesh is typically used as reinforcement in concrete floor slabs during the construction of houses, garages and other buildings. It can also be used in driveways and pathways. The affected products are grade 500E sheets of ductile steel mesh sold since mid-2012:

Euro Corporation – SE615-500STD (SE615)Brilliance – 147E G500E ductile mesh (147E)

In the course of an investigation, initial testing undertaken by the Commission showed the steel did not meet the requirements of the standard, specifically in relation to elongation. The elongation, or ductility, requirements are designed to ensure that the steel can stretch under pressure or movement, such as experienced in an earthquake, without failure.

One of the companies has challenged the Commission’s test results. The Commission will be undertaking further testing and working with experts and with the companies to determine whether the products comply with the standard.

In the meantime, the Commission has asked both companies to stop selling the affected products until its concerns are resolved. Both companies have agreed to do so. The Commission will take steps to ascertain whether the sales have stopped.

The Ministry of Business, Innovation and Employment’s (MBIE) advice is that those who have purchased the affected Brilliance and Euro Corporation products but have not yet installed them, should not install them before checking with their builder or engineer on the grade of mesh specified in their building consent. If Grade 500E is specified in their building consent, the affected product should not be installed while the Commission’s investigation continues.

MBIE will be providing further information for consumers and those in the construction industry who have already installed this product.

Misrepresenting a product as complying with the standard when it does not is a breach of the Fair Trading Act 1986 for which companies can be fined up to $600,000 per offence.

As the Commission’s investigation into this issue is ongoing no further comment will be made at this time.