LONDON (AP) — Arconic, the metal products maker that was once part of Alcoa Inc., said Monday it will stop selling one type of aluminum composite paneling for use on high-rise buildings after speculation that the material contributed to the spread of a deadly fire at a London apartment tower.
Reynobond PE, which has a polyethylene core, will no longer be sold for high-rise projects, New York-based Arconic said in a statement. The company also makes another type of panel — Reynobond FR — which is fire-resistant.
“We believe this is the right decision because of the inconsistency of building codes across the world and issues that have arisen in the wake of the Grenfell Tower,” Arconic said in a statement. “We will continue to fully support the authorities as they investigate this.”
The company’s shares fell as much as 11 percent Monday and closed down 6 percent at $24.01 in New York following weekend news reports that Arconic sold the panels installed on Grenfell Tower knowing they would be used on a high-rise building.
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In a statement late Monday, Arconic acknowledged it supplied Reynobond FR to a fabricator which used it as a component on Grenfell Tower’s cladding system. Other parts of the cladding, including its insulation, were supplied by others, it said.
It added that it sold its product with the expectation it would be used in compliance with local building codes.
“Our product is one component in the overall cladding system; we don’t control the overall system or its compliance,” Arconic said.
The company previously had warned that such panels posed a fire risk on tall buildings.
At least five law firms announced Monday that they were investigating claims on behalf of Arconic shareholders who have lost money on their investments since the fire.
London’s Metropolitan Police said Friday it was investigating what role aluminum composite…