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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news