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

 


KiwiRail can't find Hillside buyer; Foundry sold to Bradken

KiwiRail fails to find buyer for Hillside; Foundry sold to Australia’s Bradken

Nov 15 (BusinessDesk) - KiwiRail has failed to find a buyer for its unprofitable Hillside Workshops in Dunedin apart from the foundry operation, which it has conditional agreement to sell to ASX-listed manufacturer Bradken for an undisclosed sum.

The heavy lift facility at the 7.2 hectare Hillside site will now be operated by stat-owned KiwiRail’s freight business and other operations will be progressively closed down over the next few months as work is either completed or transferred to the Hutt Workshops.

“Despite a rigorous sales campaign there simply wasn’t a buyer out there for the whole operation,” chief executive Jim Quinn said in a statement. “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.”

A spokeswoman for KiwiRail couldn’t say if the sale price would be made public. Bradken already has foundry operations in New Zealand and will continue to do some work under contract for KiwiRail.

There are currently 115 workers at Hillside.

The rail operator is on a drive to strip out $200 million in annual spending if it is to meet forecast earnings of $64.6 million by 2013.

Shares of Bradken fell 0.1 percent to A$4.55 on the ASX today, valuing the company at A$772 million, and have declined 41 percent in the past year. The New South Wales-based firm employs 6,000 people worldwide.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Planes: Jetstar Launches Regional Network

Jetstar, the Qantas Airways budget offshoot, launched its new regional network in New Zealand with special $9 one-way fares and has narrowed down its choices to five routes and four destinations - Nelson, Napier, New Plymouth, and Palmerston North. More>>

ALSO:

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news