Sudden US move for Liddell

By PAM GRAHAM

Carter Holt Harvey chief executive Chris Liddell is moving overseas and neither he nor his replacement, Peter Springford, will rule out a similar move by the company itself one day.

In "a normal career move that happens in global companies". Liddell, 44, will become vice-president, finance, at the Connecticut head office of 50.5 per cent owner International Paper.

Springford, 48, former Fletcher Challenge manager and one-time head of Carter Holt's wood products business, will move to Auckland from Hong Kong where he has been spearheading IP's push into China. The handover is on December 1.

Liddell, who told the Business Herald just last week that he was enjoying the job he has held for 3 1/2 years, said the move happened "reasonably quickly".

As the first New Zealander to lead Carter Holt on behalf of IP after US executives David Oskin and John Faraci, Liddell was a member of a new generation of local business leaders.

The Mt Albert Grammar old boy with an honours degree in engineering from Auckland University made it to the top of investment bank Credit Suisse First Boston before joining Carter Holt.

He and partner Bridget Wickham have been active in groups seeking to bridge the divide between government and business.

Liddell's move comes as something of a surprise since he often said he had made a commitment to stay in New Zealand and rejected opportunities to work abroad.

Yesterday he said that commitment remained in spite of the move. "I'm certainly not turning my back on New Zealand, I want to continue to assist wherever I can."

The jury is still out on Liddell's time with Carter Holt.

While his work restructuring the company has attracted interest and praise, the share price has continued to languish and profits have remained thin.

The third-quarter profit of $57 million announced last week represents a dramatic improvement on the $15 million in the same quarter a year ago but is still an inadequate return on capital.

"I think he's done a very good job but I think it's a job that's not complete," said Don Turkington, executive director of Forsyth Barr. Carter Holt shares were unchanged at $1.63 yesterday, more than 60 per cent below asset backing.

The second-biggest company on the Stock Exchange has three-quarters of its assets in New Zealand but the overseas businesses, mostly in Australia, have been earning more money, raising the prospect that the company may one day follow others to Sydney.

Liddell said yesterday it would not happen in the short term but did not rule it out. "We have really outgrown New Zealand as our primary base," he said, but that did not necessarily mean the company would have to move.

"Whilst a lot of our sales are outside of New Zealand, what I would describe as the heart of the soul of the company is still here.

"I don't see that really being an issue in the short term. It will become a bigger issue as time goes on."

Liddell remains on the board of Carter Holt, which meets eight times a year. He will not continue on the board of the Rugby Union.

In the US, he will have 10 to 15 staff reporting directly to him and "dotted reporting lines" from across the group for a strategy role.

Back in New Zealand it would be business as usual, said Springford, an Otago MBA. "Obviously everyone has a different style, but I don't see a lot of change in the short term."

Springford said his appointment from Asia did not signal a new strategy. IP had concentrated on packaging in Asia, while Carter Holt was stronger in wood products, linerboard and pulp. They already worked together on marketing in China.

Springford was also non-committal about where the head office might go.

"We're pretty committed to New Zealand at the moment and I think it will be like that for some time," Springford said. "But we have to look at the future."