What Squire Funeral Services owner Brian Morris acknowledges as "an embarrassment" in Kaikohe is being corrected.

Mr Morris is spending $1.8 million on upgrading his Kaikohe premises to a state-of-the-art funeral parlour.

The build includes a new chapel, viewing rooms and a mortuary with two tables.

"It would be fair to say the premises was an embarrassment - the premises reached its use-by date about 15 years ago. The new building is purpose-built and will, for the first time in Kaikohe, have chapel facilities."

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While the capital outlay was large, the building would not be opulent - the price was high simply because that was the cost of the facilities, he said.

"We need to provide a satisfactory modern service ... this is a considerable development which should meet our needs.

"We regard Kaikohe to be the hub of the Mid-North and certainly the central point of 'our patch'."

Mr Morris bought two adjacent sections on Wihongi St to accommodate the build, which is due to be completed in April.

The firm's current Kaikohe premises are on Rankin St.

He said the build, by Kaikohe firm Henwood Builders, would result in the company employing an additional staff member, whose role would include custodian of the property.

Squire's services a footprint in the North which includes Towai, half way to Dargaville, Mangamuka, Kaeo and some of Matauri Bay. The company also has a premises in Kawakawa.