Listed tourism Holdings has entered a 50:50 joint venture
with Kea Manufacturing to make campervans and motorhomes,
prompting the closure of its Hamilton motor-body assembly
business with the loss of up to 63 jobs.
Shares in Tourism Holdings were unchanged at 60c after the
announcement.
Tourism Holdings chief executive Grant Webster said under the
transactions about $7.5 million in assets would be transfered
from Tourism Holdings to the joint-venture company, RV
Manufacturing Group (RVMG), with no expectations of any
negative effect on the full-year earnings before interest and
tax for the business.
Combining both companies' business skills, in the face of a
downturn in European and United Kingdom visitors and the
negative effects of high New Zealand and Australian dollars,
would create a platform for strong profit growth, he said.
He said the company's motorhome assembly business in Hamilton
would be closed as a result of the joint venture.
Sixty-three workers of 127 would be made redundant, but 24
could apply for Auckland-based jobs and 20 could take
contract roles in New Zealand or Australia.
Both Tourism Holdings and Kea would sell their respective
motorhome and campervan manufacturing businesses to RVMG,
while Tourism Holdings would also sell its specialist and
bodywork business to RVMG.
The Hamilton building owned by Tourism Holdings would be sold
at a later date.
Kea Manufacturing is a separate entity from Kea Rentals.
Tourism Holdings' half-year result is scheduled for release
tomorrow.
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