Wairarapa firm lays off workers

Fulton Hogan is negotiating to buy Wairarapa company Bruce Buchanan. FILE PHOTO

Masterton company Bruce Buchanan has laid off 20 staff before a planned shutdown of its construction division and sale of its assets to Fulton Hogan.

The family-owned operation's managing director, Wayne Buchanan, yesterday told the Times-Age he was unwilling to discuss the sale or redundancies due to a confidentiality clause.

However, when speaking to Fairfax Media this week, Mr Buchanan said efforts were being made to find jobs for the redundant staff, but there were no guarantees all would secure a position at Fulton Hogan.

Fulton Hogan's regional manager, Blair Gregory, said the company was "working through the purchase of their [Buchanan's] assets and trying to employ as many staff as possible".

On Tuesday, Fulton Hogan reported a 9.7 per cent increase in annual profit to $151.6 million, as building activity in Christchurch and Auckland offset slower Australian work.

Higgins contracting manager Andrew Linton said with three companies based in Wairarapa, plus others from outside the region, competition for contracts had been strong over the last few years.

"Roading and private work has slowed down -- there's not much in the way of subdivision like there was because house sales are slowing ... it's a bit of a market slowdown in that area and the Wairarapa is a bit slower coming out of it at times."

Some councils had cut back on roading spending, which had also had an effect, he said.

In July, Bruce Buchanan was one of eight companies to be inducted into the Wellington Region Business Hall of Fame.