HGM Group closes - at least 30 jobs go

Property Editor·

9 Mar, 2003 09:35 AM2 mins to read

By ANNE GIBSON

A company owned by Hawkins Group is closing down its operations and laying off at least 30 staff.

HGM Group has already closed Tauranga's JedSteel and laid off its 22 staff. The Tauranga-based group is owned by Hawkins Group, which also owns Hawkins Construction - one of New Zealand's top four builders.

HGM provided a range of construction, civil engineering, steel fabrication, painting and coatings services to central North Island businesses, including the Kawerau pulp and paper mill.

Hawkins, with a $180 million annual turnover, is one of the largest builders, along with Fletcher Construction, Multiplex and Mainzeal.

Auckland businessman and McConnell family heir David McConnell - son of McConnell Dowell founder the late Buck McConnell - is a director of HGM Group, along with Michael Wardle.

David McConnell is joint managing director of the diversified McConnell International "which includes McConnell International Property, Steelpipe NZ, Hawkins Construction, HGM Group and Bisleys Environmental", according to his director profile in the latest annual report of state-owned enterprise Mighty River Power.

A company spokesman said yesterday HGM was a central North Island contractor was announcing "the managed closure of one of its activities, HGM, in Kawerau and the managed sale or closure of its other activities".

HGM Group general manager Kelvin Hill said the closure of HGM in Kawerau would mean 18 redundancies.

"HGM has been affected by the international downturn in forestry prices and the competitive impact of that on the businesses in the central North Island. We are in discussions with potential buyers and we hope that smaller, standalone businesses with low overheads and with managers close to the business will be more profitable," said Hill.

Hawkins Construction chief executive officer Chris Hunter said the builder had a $180 million annual turnover and $112 million worth of work pending. "We're in the best position that I have seen for a number of years," he said.