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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news