Oxygen wins $2m deal

By ADAM GIFFORD

Carter Holt IT services subsidiary Oxygen has won a $2 million contract to implement an SAP system into International Paper Asia.

Oxygen chief executive Jeremy Fleming said it involved sites in Hong Kong, China, Japan and Korea, and was expected to take about 18 months.

As well as the core financial models, the company is rolling out procurement and product-costing modules.

Memphis-based International Paper owns 51 per cent of Oxygen's parent, but the companies have separate IT systems.

The relationship allowed Oxygen to get in the door, but it had to win the business on its merits," said Fleming.

"We've had guys in Memphis for a year, getting the confidence and trust we can do this."

He said the work would give Oxygen staff insights into International Paper's business processes, which could help win further work.

It would also give them valuable experience working in Asia, which would be useful if Carter Holt Harvey expanded its operations into the region.

Oxygen was formed just under a year ago as part of Carter Holt Harvey's restructuring into 33 companies rather than six business groups.

It has a $300 million, five-year contract to run Carter Holt's SAP system, but has a mandate to seek outside customers, particularly in the SAP market.