Building products maker James Hardie Industries and the New Zealand Ministry of Education have reached a confidential settlement over leaky school buildings.
The ministry lodged a claim in the High Court in April against cladding manufacturers that supplied materials for schools affected by weather-tightness failure, seeking remediation on 800 buildings across more than 300 schools.
Two of the manufacturers were New Zealand subsidiaries of Sydney-based James Hardie Industries.
On Monday, the company announced it had finalised a settlement with the ministry and the ministry had agreed to drop its legal claims.
The money would be used to help schools fix weather-tightness issues, and support future, high quality school property developments around New Zealand, the ministry said.
"This settlement represents a win-win situation for both parties and I'm very pleased to see it reached," Associate Education Minister Nikki Kaye said.
"This agreement strengthens the government's ability to significantly address weather-tightness issues in our schools and support future investments in school property - without the need for lengthy court action."
The ministry will continue pursuing other defendants including Carter Holt Harvey and CSR Building Products (NZ) Limited who supplied materials for buildings affected by weather-tightness failure.
The ministry has settled more than 40 claims on leaky buildings since 2009.
James Hardie said the settlement would not have a material adverse impact on its business results.
It had taken a provision of $US15.2 million ($A17.08 million) over the ministry's $NZ1.5 billion ($A1.40 billion) class suit against cladding manufacturers, according to its second quarter financial statements.
James Hardie has been named in five High Court judgments on other leaky building cases this year involving three Auckland apartment buildings, one apartment property in Mount Maunganui and one home in Wellington.
