Delta units being axed
20 Central jobs to go
Infrastructure specialist Delta has confirmed it will exit its Central Otago civil construction contracting businesses resulting in 20 job losses. The Central Otago water and civil business unit will close in September. The company will also close the Dunedin water and civil business unit in August with 40 job losses and the Southland water and civil business unit will close in January with 16 job losses. Delta chief executive Grady Cameron said the business would phase itself out to avoid further losses and to reduce its risk profile in line with the requirements of its shareholder, Dunedin City Holdings, to generate stable cash flows. Mr Cameron said there were no alternatives to closure provided from the consultation with its Dunedin, Central Otago and Southland civil construction employees. "Regrettably, there is now no viable alternative other than to close the businesses and exit the civil construction contracting market,’’ he said. ‘‘We know that the decision is unwelcome and has a direct impact on our employees and their families.’’ ‘‘We . . . have made considerable, ongoing efforts ... to turn around lossmaking civil construction operations including a management restructure.’’ The company lacked longterm maintenance contracts to underpin construction project work to compete against national and multinational companies. The Christchurch civil construction contracting business was closed in June and almost all the employees had found alternative employment.