Parent firm cements out Milburn label

By IRENE CHAPPLE

They might have built this city on Milburn, but its future will be paved by Holcim.

This week an icon of the building industry - the Milburn label, complete with yellow singleted man - makes way for the brand of its huge overseas parent.

Milburn, one of New Zealand's oldest firms, was founded in Dunedin in 1888 and its concrete has since shaped much of New Zealand's city skylines, and at least half the country's roads and bridges.

Switzerland-based Holcim bought part of the company in 1971 and, managing director of Milburn Rex Williams said, the rebranding was a "logical progression of a 30-year relationship."

But, he says, it is a bit sad. "I feel for it ... I can remember the name of Milburn from years ago. To be the [managing director] and to be burying it is a bit weird."

Williams said Holcim management had left the Milburn brand intact as it increased its stake in the company, eventually taking full ownership in 1999. But, a year ago, it decided to pull its subsidiaries - in 70 countries - under the one brand.

"I think in the short term there will be regret," said Williams, "like ... 'why can't we keep our brand?', but after that people will take pride in the Holcim group."

The concrete giant has been rebranding its cement plants worldwide and its logo - a distinctive black H over a red C - is already on some Milburn cement silos.

Completing the job, including new uniforms, labels and logo repainting, will take another two years and cost about $2 million.

Loss of the Milburn name will not directly affect the balance sheet, as the brand is not included as an asset. Launching the Holicm name has cost about $3000.

Milburn has changed its name before. In 1963, the Milburn Lime and Cement Company merged with New Zealand Cement Holdings and adopted the latter company name.

But its products retained the Milburn name and, on its 100 years anniversary, in 1998, the company returned to the Milburn name.

Milburn, which employs 751 people and has a turnover of more than $200 million, will continue to source and process its New Zealand products locally under the new brand.

"We're not like some other companies whose brands are above everything else and everything goes to New York or whatever," said Williams.

"We're trying to keep it very much [in New Zealand]."