Listed tourism Holdings has entered a 50:50 joint venture with Kea Manufacturing to make campervans and motorhomes, prompting the closure of its Hamilton motor-body assembly business with the loss of up to 63 jobs.
Shares in Tourism Holdings were unchanged at 60c after the announcement.
Tourism Holdings chief executive Grant Webster said under the transactions about $7.5 million in assets would be transfered from Tourism Holdings to the joint-venture company, RV Manufacturing Group (RVMG), with no expectations of any negative effect on the full-year earnings before interest and tax for the business.
Combining both companies' business skills, in the face of a downturn in European and United Kingdom visitors and the negative effects of high New Zealand and Australian dollars, would create a platform for strong profit growth, he said.
He said the company's motorhome assembly business in Hamilton would be closed as a result of the joint venture.
Sixty-three workers of 127 would be made redundant, but 24 could apply for Auckland-based jobs and 20 could take contract roles in New Zealand or Australia.
Both Tourism Holdings and Kea would sell their respective motorhome and campervan manufacturing businesses to RVMG, while Tourism Holdings would also sell its specialist and bodywork business to RVMG.
The Hamilton building owned by Tourism Holdings would be sold at a later date.
Kea Manufacturing is a separate entity from Kea Rentals.
Tourism Holdings' half-year result is scheduled for release tomorrow.
