Job cuts loom as firm downsizes

Stevenson Group is closing its big masonry operations and many of its distribution yards. Photo / Paul Estcourt

One of New Zealand's oldest building material manufacturers is shutting a large part of its business and expects to lay off about 100 people.

The 97-year-old Stevenson Group, which has its headquarters in East Tamaki, is closing its big masonry operations and many of its distribution yards which have supplied the $12 billion building sector for many decades.

John Rae, Stevenson managing director, said the closures would affect trade yards at 55 Springs Rd in East Tamaki, 29A Alfred St in Onehunga, 24 Oteha Valley Rd at Albany and 20 The Concourse in Henderson.

A Newmarket display centre at 2 Gillies Ave would also shut, he said.

"These yards feature themed displays that will provide sources of inspiration about how our comprehensive range of masonry, paving, and retaining products can be used in your project. Stevenson has also recently opened a showroom called Life Outside, in Newmarket," its website says.

Distribution centres at Drury and Albany stored most of the masonry products but top-up stock was available from the trade yards.

Rival business Fletcher Building wants to buy part of Stevenson but the Commerce Commission is yet to approve the deal. Mr Rae said he hoped a large part of the business could be saved through the Fletcher purchase.

Fletcher wants Stevenson's Whangarei and Auckland masonry businesses but the commission rejected a few years ago Fletcher's attempts to buy parts of Stevenson.

Stevenson was founded in 1912 and remains a family-owned business but Mr Rae said the changing economy had hit it hard.

A big downturn in the residential housing market, stiff competition from overseas and extremely tight margins had made it impossible to continue, he said.

The masonry business makes concrete masonry blocks in wall construction and outdoor pavers but Mr Rae said territorial authorities were preferring to use materials imported from overseas rather than locally made products.

He blamed the declining number of new house starts, down from a peak 24,000 this decade to about 16,000, as well as intense competition in the paving market from imported materials from China and India.

"The decline in the new housing market was just the coup de grace," Mr Rae said.

Instead of using blocks, builders were using many alternative materials in houses and commercial construction including steel, timber and pre-cast concrete. Blocks were also labour-intensive and the number of blocklayers was declining.

Other parts of the diversified Stevenson business will continue, including its engineering, agriculture, aggregate, mining and property operations.

Firth, owned by Fletcher Building and Holcim, would be the only large locally based manufacturers and suppliers of masonry materials.