The company said the move “further extends and enhances the profitability of NZME’s ongoing print operations”.
“Under the agreement, NZME will take ownership of Stuff’s Petone plant equipment and begin removing it from the site later this year,” NZME said in its NZX announcement.
“The total investment, including relocation, installation and commissioning, is expected to be up to $15 million over the next two years, with cashflow payback within the following three years.
“The Petone equipment is about a third of the size of NZME’s current plant and runs more efficiently, meaning the acquisition is expected to deliver annual operating savings of around $7 million, subject to print volumes, once installed.
“In addition, this provides the capability for NZME to provide further third-party print options throughout the North Island.”
NZME chief executive Michael Boggs. Photo / Michael Craig
NZME chief executive Michael Boggs said the acquisition would help “right size” NZME’s production capacity, ensuring its future sustainability.
“Print remains an important part of how many New Zealanders consume news and connect with their communities. We’re investing in the capability to continue delivering that for years to come, alongside our growing digital platforms.”
NZME’s current lease at Ellerslie expires at the end of 2028. A paperstore was built on the site in 1969 and papers have been printed there since the early 1970s. In 1995, a brand new press hall with new Goss presses was opened.
As Media Insider revealed last year, businessman Troy Bowker acquired Stuff’s Petone print-plant building from Australian media business Nine.
In March this year, Stuff announced it would close the Wellington print plant which publishes the Capital’s daily newspaper, The Post, and several other North Island newspapers.
Stuff’s Petone print site and (inset) Stuff chief executive Sinead Boucher and businessman Troy Bowker.
At the time, Stuff said 30 jobs would be affected, but it hoped to re-employ some staff in the South Island, where the firm’s printing operation would be consolidated by 2027.
Chief executive Sinead Boucher told Media Insider at the time that all of the company’s lower North Island papers, including The Post, would be published at its existing Christchurch print facility and transported north each day.
It is understood that today’s announcement by NZME does not change that plan.
While NZME currently publishes Stuff’s Waikato Times and the northern North Island editions of the Sunday Star-Times, there are no plans to print The Post or any other lower North Island newspapers at the new NZME site in Auckland.
It is expected NZME will start dismantling and transporting Stuff’s Petone equipment to Auckland by the end of this year.
NZME chief publishing officer Matthew Wilson.
NZME chief publishing officer Matt Wilson said: “The Petone plant equipment is more modern, well-maintained and right-sized for our current and future requirements.
“Acquiring it gives us the opportunity to improve productivity, reduce wastage further, and establish a printing platform that matches our business.
“We’re pleased to have been able to move quickly to secure this asset.
“NZME has a strong record of reliability and award-winning print quality, which is a reflection of the capability of our team.
“We’re committed to carrying that same standard of excellence into our new facility with a seamless transition.”
NZME said it would provide further detail at its half-year results later this month.
NZME and the NZ Herald will be leaving its Ellerslie print-plant facility by the end of 2028. Picture / Sarah Ivey
In a statement today, Boucher said the sale of the print assets was the right move for Stuff.
“We considered a number of options for the Petone press once we had announced our long-planned move to Christchurch.
“We spoke with interested parties internationally and locally, and we are pleased to see it retained as an operational plant in New Zealand, supporting a press upgrade for NZME’s newspapers and maintaining locally-owned print operations in the North and South Islands for publishers.”
The Petone print plant would be decommissioned late in 2026, and a group of Petone printers would relocate to the Christchurch site.
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.