Australia’s Largest Home Builder Rebuts Insolvency Reports

A construction site at Marsden Park is seen closed down due to COVID-19 restrictions in Sydney, Australia, on July 19, 2021. Mark Evans/Getty Images

Australia’s largest home building company Metricon Homes has announced that it is still in a strong position when confronted with reports about its insolvency.

The company officials had a meeting with Victorian Treasurer Tim Pallas on May 19, and Metricon chief executive Peter Langfelder affirmed that everything was normal.

“We’re always in contact with government,” he told reporters.

“We had a fantastic engagement with them. Very positive for us and generally for the industry.”

Langfelder noted that Metricon Homes had fully paid all of its traders and suppliers on time and received support from banks.

At the same time, the treasurer said that the Victorian government would continue to discuss the factors impacting the construction industry with Metricon and other companies.

“We understand the pressure on builders on the eastern seaboard due to increases in costs and the impacts this is having on the construction industry and residential clients,” the treasurer said in comments obtained by AAP.

“The government will continue to work constructively with the industry to help address these challenges.”

Earlier on May 18, Langfelder refuted the news that the company was going into insolvency and said it was still viable.

“There is simply no basis to these rumours. Metricon is a strong, viable business without any solvency problem,” he said.

“The biggest challenge Australia faces is to get more homes built for more Australian families, and as the biggest home builder in the country, we are the ones to deliver.”

Reports of Metricon’s insolvency have emerged as the construction industry is struggling with rising costs, labour shortages and supply chain issues, with the collapse of several major builders such as Probuild and Condev Construction.

Signage and construction machinery are seen onsite at The Ribbon project at Darling Harbour in Sydney, Australia, on Feb. 24, 2022. AAP Image/Bianca De Marchi

Meanwhile, the Metricon CEO said that the company was still in disturbance after the founder Mario Biasin suddenly died on May 18.

“This is an extremely difficult time for our business... so we’re dealing with the grief,” Langfelder said.

“But our business has been very strong for 45 years and will continue to for a long, long time to come.”

Speaking of reports on Metricon’s collapse, Master Builders Victoria chief executive Rebecca Casson said the association was “very optimistic” about the company’s future.

“It is incumbent on everyone not to join in with the rumour narrative, especially during this incredibly challenging time,'” Casson said.

“Now, more than ever, it is vital that our industry sticks together and supports each other. ”

Meanwhile, Shadow Treasurer David Davis said that the Victorian government was not helping businesses like Metricon as high taxes and regulations were imposed on the state’s construction industry.

“The government needs to work with the sector to actually do everything they can to take the pressure off,” Davis told reporters on May 19.