Australian building products maker James Hardie is being sued by the New Zealand government over a $NZ1.5 billion ($A1.24 billion) repair bill for leaky school buildings.

The New Zealand Ministry of Education has commenced legal action in the nation’s high court against two New Zealand James Hardie subsidiaries and other parties.

James Hardie shares were placed in a trading halt on Wednesday morning before it released details of the legal action in a statement later that afternoon.

“The New Zealand Ministry of Education is claiming weathertightness defects in relation to several thousand New Zealand school buildings and is seeking repair costs and unspecified and unquantified damages in relation to the alleged defects,” James Hardie said in a statement.

New Zealand acting education secretary Peter Hughes, in a statement, said the ministry had lodged a High Court claim on behalf of schools.

He said repair work was already under way on more than 800 buildings at more than 300 schools.

The ministry said it would not comment further as the matter was before the courts.

There are currently no details on how much James Hardie is being sued for.

James Hardie said it was working with its lawyers on the case and was currently unable to assess what proportion of the claim related to its subsidiaries.

Earlier this year, James Hardie increased its charge for a New Zealand product liability by $US7.5 million ($A7.25 million) to $US13.2 million ($A12.76 million) in the 2013 financial year.

These legacy claims relate to buildings that were primarily constructed between 1998 and 2004.

Last month James Hardie announced a third quarter profit of $US28.8 million ($A27.85 million).

After coming out of the trading halt, James Hardie shares closed down 18 cents, or 1.84 per cent, to $9.59.