Airwork division sold for cash

Press, 30 October 1981, Page 9

Airwork division sold for cash

The Southern Cross Engineering Company, Ltd, a Christchurch contractural engineering firm, has bought for cash the farm equipment division of Airwork (New Zealand). Ltd. it was announced yesterday.

It had been announced in September that Air Work would close its Rangiorabased farm equipment division. and that 25 employees would lose their jobs.

However, in a statement. Southern Cross Engineering said the 25 employees in the Airwork division had found alternative employment. The technical staff of the division, which makes front-end loader attachments for tractors, would make the move to Southern Cross.

The general manager of Southern Cross. Mr G. McMaster, said the transfer of the technical staff in-

volved three persons. In the statement Southern Cross said that essential plant and engineering equipment would be moved to its Christchurch property, where expansion had begun. Staff recruitment of skilled and semi-skilled tradesmen was being advertised. Southern Cross’s marketing manager, Mr K. Sibley, said products would continue to be marketed under the Airwork brand in the meantime. There would be no disruption to work and all contracts would be met on time.

Increased transport and distribution costs, coupled with a downturn in the farming sector, were the reasons given by Airwork for deciding to close the Rangiora division.

Airwork’s divisional general manager, Mr M. R.

Fairweather. had been quoted in September as saying that the branch had not been "particularly profitable" in the last few years. As had been reported Airwork incurred a group net loss of $225,182 in the year to March 31, compared with a profit of $235,861 previously, and took the drastic step of deciding against paying a recommended final dividend at the annual meeting on September 18.

Airwork also sold its agricultural aviation division to a new company. Airwork Agricultural Aviation, Ltd, in August. Airwork holds a 25 per cent interest in the new company, and the other three shareholders. Transport (North Canterbury) Holdings, Ltd. Rowley Aviation, Ltd, and McAlpines (Rangiora), Ltd, hold 25 per cent each.