CHH packaging head office for Melbourne

By Libby Middlebrook

Forestry giant Carter Holt Harvey's packaging division will join the business exodus to Australia next year.

During the next four months, Carter Holt plans to shift the division's head office to Melbourne, where a substantial proportion of its business is generated. The group's tissue division moved its head office there a year ago.

Carter Holt's manager of investor and government relations, Jim Whineray, said positive growth prospects for packaging in Australia drove the division to relocate its head office. Carter Holt had also recently invested in two Australian packaging facilities.

"It's not to say we've turned our backs on New Zealand. Increasingly, it's a transtasman business. We have customers in both Australia and New Zealand."

About four Auckland-based packaging staff will move to Australia, including the division's chief executive, Ian Unwin. Mr Whineray said no other staff would be affected.

Packaging was the group's poorest performer in the six months ended September 30, producing operating losses of $3 million compared with earnings before interest and tax of $11 million in the same period last year.