NZME (NZE:NZM, ASX:NZM) struck an agreement to acquire the print plant equipment at Stuff's facility in Petone, New Zealand, according to a Friday filing with the Australian and New Zealand bourses.
The company said it will take ownership of the plant equipment and begin removing it from the site later this year, with an expected total investment of up to NZ$15 million over the next two years for relocation, installation, and commissioning.
NZME expects cashflow payback within the following three years, per the filing.
The equipment is about a third of the size of NZME's current plant and runs more efficiently, and once installed, is expected to yield annual operating savings of around NZ$7 million, subject to print volumes.
NZME said its current lease at Ellerslie enables printing operations through 2028, and the Petone equipment will be installed at a new facility in a managed transition.
The company's New Zealand-listed shares added over 1% in recent Friday trade.