Euro Corporation Fined in Steel Mesh Case in New Zealand
Fuseworks Media reported that Euro Corporation Limited has been fined NZD 361,000 for making false or misleading and unsubstantiated representations relating to its earthquake grade steel mesh products, known as SE615. Auckland District Court Judge M-E Sharp sentenced Euro on 14 charges brought by the Commerce Commission under the Fair Trading Act. Euro pleaded guilty to making false or misleading and unsubstantiated representations for its SE615 steel mesh products which it marketed and sold as being earthquake grade steel mesh (known in the industry as 500E grade) between January 2012 and August 2015.
Euro is the final company to be sentenced as a result of a series of investigations into steel mesh the Commission carried out in 2015 and 2016.
Euro both manufactured SE615 steel mesh in New Zealand and imported it from overseas. The company failed to comply with the testing procedures set out in the Australian/New Zealand Standard (AS/NZS 4671:2001) for reinforcing steel when testing locally made steel. This meant that the product could not be described as being 500E. Euro also did not have reasonable grounds to make representations that SE615 mesh it imported was 500E grade. In addition, Euro represented that all of its batches of SE615 mesh had been independently tested and certified when that was not the case. The charges relate to approximately 137,900 sheets of locally manufactured SE615 mesh and 104,900 sheets of imported SE615 mesh.
Formed in 1997, Euro Corporation is a New Zealand owned and operated company, and is divided into three main business units - Reinforcing Steel, Wire Fencing and Nail products.