KEY POINTS:
Hirequip is moving its head office from Dunedin to Auckland to better align the business with its largest market and to make it easier for the new Australian owners to attend board meetings.
Chief executive Brian Stephen said the senior operational management was already based in Auckland, and the relocation from Dunedin would include procurement, IT and finance.
"We have discussed for some time the need to align our business with our largest markets and key opportunities," Stephen said.
"There are a significant number of strategic benefits to be gained by consolidating and focusing our national management and administrative functions in one location."
The company would operate as a closer team when based in the same building and environment, he said.
"Procurement and IT working with operations is critical."
Hirequip was bought in November by Pacific Equipment Solutions' subsidiary PES Finance, associated with Nikko Principal Investments, for about $168 million and up to another $7.5 million contingent on earnings to June 30.
Many equipment suppliers were also based in Auckland "and just in terms of travel given now that [the company is] owned by an Australian-based equity firm it's a hell of a lot easier to get into Auckland than it is to get into Dunedin on a regular basis".
The relocation was planned to be completed by July 1, with 25 people potentially affected.
The company would begin talks with staff, who could apply for positions at the new office.
Stuart McKinlay, who founded Hirequip in 1968, has retired from the business, although he will stay on as a consultant for the next four to five months during the change in ownership.
McKinlay's retirement was a critical event in the company's history, Stephen said.
"He is an icon of the New Zealand hire industry and he is passing on to his successors a dynamic and vibrant business that will continue to grow and develop in the years ahead."
