Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Future of Hillside Workshops Resolved

15th November, 2012

Future of Hillside Workshops Resolved

The future of Hillside Workshops in Dunedin has been resolved after an extensive national and international search was undertaken for potential purchasers for the site. Unfortunately that process did not result in any purchaser for the entire Hillside business.

KiwiRail has entered into a conditional agreement to sell the Foundry to Bradken who will continue to operate the site, including supplying parts to KiwiRail as required. The sale is expected to be completed early next year.

KiwiRail’s freight business will now operate the heavy lift facility and the rest of the site will be progressively closed down over the next few months as work is either completed or transferred to the Hutt Workshops near Wellington.

According to Chief Executive, Jim Quinn, while it was unfortunate the company couldn’t finalise a purchaser for the whole business, he was pleased there will still be some operations continuing at the site.

“Despite a rigorous sales campaign there simply wasn’t a buyer out there for the whole operation,” he said.

“As one of only a few foundry operations in New Zealand, Bradken could see the potential for this part of Hillside and we will be contracting some work to them as required. But, as an international engineering enterprise, they will also be able to access a larger business market with more product scope than the foundry’s largely ‘rail only’ focus.”

The decision to sell Hillside was made following a thorough analysis of both the current work and future prospects for the Workshops which concluded there is not enough work to cover the costs to run the site, particularly when the existing rail capital projects end.

“KiwiRail alone could not afford the future operating costs to keep Hillside open in the face of this decreasing work,” he said.

“Hillside has made an important contribution to the development of rail in New Zealand since 1875 and this won’t be forgotten. Many will be sad about its closure, however change is necessary as we continue to build a sustainable rail business for the challenges ahead.”

“This will be very difficult for our staff and although some will be transferred to Bradken or the KiwiRail Freight business, there will be redundancies,” said Mr Quinn.

“We will be working closely with the Hillside team and their representatives as we progress to the next stage and start to wind down operations.”

Locomotive, engine, bogie and wheel refurbishment capability will continue to be provided to KiwiRail by the Hutt Workshops.

Further Background

The Hillside site, in South Dunedin, covers 7.2 hectares with 3.1 hectares of covered workshops and buildings. There are currently 115 staff working at Hillside. At this stage Foundry staff will be offered employment by Bradken, some will continue to work for KiwiRail Freight in the heavy lift area, and there will be redeployment opportunities to Hutt Workshop in Wellington.

The site was advertised nationally and internationally for sale from April to June 2012 and a number of expressions of interest were received. The sale process took longer than initially anticipated as we worked hard with the parties who had expressed an interest in purchasing the entire operations. Unfortunately after an extensive sale process we could not source a buyer for the entire Hillside business.

Bradken

Bradken employs over 6,000 people and is a global designer, manufacturer and supplier of differentiated capital and consumable products to the mining and construction, rail and transit, energy and general industrial markets. The company’s global footprint includes 34 manufacturing facilities throughout Australia, New Zealand, the United Kingdom, China, the United States of America, Canada, Malaysia and Indonesia supported by a global network of sales and service facilities. The driving force behind the company is a commitment to innovation and continuous improvement. Bradken’s aim is to provide all customers with value through the creation of specialised product solutions.

Bradken’s Dunedin foundry employs 50 people and supplies high quality iron and steel castings to a range of New Zealand and overseas based general industrial and mining customers.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news