Sharechat Logo

KiwiRail to sell Dunedin's Hillside workshop

Thursday 19th April 2012

Text too small?

KiwiRail plans to sell its Hillside workshops in Dunedin after the state-owned railroad awarded contracts for new rolling stock to overseas-based manufacturers rather than use its own engineering facilities.

The railroad eliminated 44 jobs at Hillside last year and has said the facility couldn’t compete with overseas suppliers.

“KiwiRail’s decision to not bid for either the $500 million contract for Auckland’s new trains or for 500 flat top wagons was resoundingly rejected by Dunedin workers, business leaders, the city council and others as taking a very short-sighted view of procurement,” said Wayne Butson, general secretary of the Rail and Maritime Transport Union.

“If government procurement settings do not support local industry, then we simply won’t keep good manufacturing jobs in New Zealand,” he said.

A spokeswoman for KiwiRail said it would issue a press release about the sale shortly.

In February, KiwiRail said earnings in the year ending June 30 would miss the target in its statement of corporate intent because improved freight volumes were being offset by challenges in the remainder of its businesses.

Earnings before interest, tax, depreciation and amortisation are expected to be $105 million to $115 million in the year ending June 30, compared to the SCI target of $139.5 million, the Wellington-based company said.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Booster tests waters with NZX listing of private property trust
Liquidation can be sought on small debts, appeal court finds
House price inflation rekindles but low sales volumes suggest caution
Liquidators estimate $16m shortfall from Stanley-Tallwood collapse
Manufacturing contraction extends into August
House price inflation rekindles but low sales volumes suggest caution
13th September 2019 Morning Report
Tamarind halts Tui drilling; OMV assesses options
NZ weaker as ECB package, inflation data lifts greenback
MARKET CLOSE: Z Energy, Synlait crash on earnings downgrades

IRG See IRG research reports