Dunedin City Council's infrastructure company Delta is to close its civil construction arm in Christchurch with the loss of 40 jobs.
Chief executive Grady Cameron said there were no alternatives to closure following the consultation with its employees which concluded on Tuesday.
Mr Cameron said there is no viable alternative other than to close the business and exit the Christchurch rebuild market.
He said Delta's current and future workloads in the city were insufficient to maintain its existing civil construction workforce and depot base.
Delta is a diversified infrastructure specialist which employs about 650 people in New Zealand. The company reported revenues of $108.6 million in the 2012 financial year, the largest in its 15 years.