The Government's biggest science company, AgResearch, is going ahead with plans to close its 98-year-old Wallaceville research centre, north of Wellington.
AgResearch chief executive Keith Steele said the closure - affecting 140 jobs in the Upper Hutt area - was part of the company's plan to spend $19.6 million rebranding some
of its remaining major research sites as "science innovation centres".
AgResearch plans to consolidate research at its sites at Ruakura (Hamilton), Grasslands (Palmerston North) and Invermay (Mosgiel), which will share closer links with Auckland, Lincoln and Otago universities.
Overall, the science innovation centres, improved science capabilities and faster commercialisation of discoveries will cost $60 million.
Dr Steele said AgResearch would give the Upper Hutt community time to "optimise the value of the Wallaceville campus".
"The availability of a huge tract of land close to the Upper Hutt City augurs well for other potential business opportunities," he said.
Dr Steele said the Government, as owner, was expected to complete its check of the company's business plan within a week.
Crown Research Institutes Minister Pete Hodgson last August approved spending $5.5 million on developing other campuses in preparation for the closure of Wallaceville.
Science work at Wallaceville will move to Palmerston North and Otago.
The Wallaceville research centre was regarded as a world leader in molecular biology, immunology, parasitology and reproductive technologies.
AgResearch has offered positions elsewhere to all 85 of its permanent science and technical staff who are able to move.
But a report this month showed the closure would cost 140 jobs at Upper Hutt, and take $24 million a year out of the local economy.
The closure plan comes 100 years after New Zealand began its first animal inoculation programme, against the "black leg" clostridium infection in calves.
Two years later, Wallaceville was established to manufacture animal vaccines.
Since then, the centre has had a notable history developing vaccines for farm animals and helping eradicate of hydatids and brucellosis.
In 1997, AgResearch built a $1.5 million infectious diseases laboratory there to focus mainly on bovine tuberculosis research.
- NZPA