Regions of opportunity - New Zealand Trade and Enterprise

Transcription

Regions of opportunity
Find out which New Zealand region matches your investment
interests by comparing each region's sector strengths and how
these are supported by the region's workforce, raw materials,
services and infrastructure.
JULY 2014
REGIONS OF OPPORTUNITY | CONTENTS PAGE
Northland
Page 1-8
Auckland
Page 9-16
Bay of Plenty
Page 25-32
Waikato
Page 17-24
Gisborne
Page 33-40
Taranaki
Page 57-64
Manawatu-Whanganui
Page 49-56
Nelson, Tasman and Marlborough
Page 73-80
Hawke's Bay
Page 41-48
Wellington
Page 65-72
West Coast
Page 81-88
Canterbury
Page 89-96
Southland
Page 105-112
Otago
Page 97-104
Icon Guide
Food and
Beverage
High Value
Manufacturing
Primary
Production
Petroleum
and Minerals
Infrastructure
Shared
Services
Information and
Communications
Technology
REGIONAL INVESTMENT | NORTHLAND
Northland
Northland has a diverse economy
with strengths in pastoral farming
and processing, forestry, horticulture,
manufacturing, marine engineering
and energy.
Regarded as the ‘birthplace of the
nation’, rich in history and culture,
Northland is New Zealand’s only
subtropical region.
It offers a diverse range of investible
opportunities deriving from its primary
and manufacturing sectors.
Regional Highlights
Global marine
expertise
Superior building
timber
International port
Areas of Opportunity
A boatbuilding hub
The region is recognised for its boatbuilding expertise
and repair capacity. There are several opportunities
to invest in the industry. The improvement of haulout facilities will enable the industry to expand and
attract new business and investment.
Adding value to a growing harvest
Northland’s exotic timber harvest continues to
increase. The region currently exports the majority
of its logs raw, but the superior quality of logs offers
investors an opportunity to manufacture engineered
wood products.
Expanding aquaculture sector
Northland has developed a strategy to grow its
aquaculture sector by 20 percent a year until 2030.
Investment in onshore and offshore production is
required to achieve this.
Northland
Sub-tropical
environment
1
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Sub-Tropical Growth Zone
Key attributes of the region
Northland is the only sub-tropical region in New Zealand and has a single city, Whangarei. The region has a low
density population providing favourable growing conditions for forestry and pastoral farming.
New Zealand’s only oil refinery is located near Marsden Point. This is also home to New Zealand’s newest,
deepest and closest port to international markets, Northport. Marsden Point has a large area of industrial
land available.
Northland’s aquaculture sector is supported by the National Institute of Water and Atmospheric Research
(NIWA) facility at Bream Bay Aquaculture Park.
Nationally
Only 25%
202,600
recognised ship
repair facilities
of logs processed
locally
hectares of
planted forest
New Zealand’s
newest
port facilities
Only
sub-tropical region
in New Zealand
Cape Reinga –
key tourist
destination
Ninety Mile Beach
State Highway 1
Juken New Zealand plant
Hancock Timber
Resource Group
Kerikeri
Bay of Islands
Top Energy’s Ngawha
geothermal power station
Whangarei Airport –
35 minutes to Auckland
Shipco 360
Whangarei
Northland marine
engineering precinct
Northport and
Refining NZ
Marsden Point
National Institute of Water
and Atmospheric Research
(NIWA)
Auckland –
2 hours by road
Great Barrier Island
A Boatbuilding Hub
Whangarei, the region’s largest city, is a recognised boatbuilding and marine engineering hub with a strong
focus on heavier engineering repairs and superyacht refits. It is well positioned to capitalise on southern
cruise routes.
Northland has significant salary and property cost advantages. There are several opportunities to invest in the
industry. The improvement of haul-out facilities, through the improvement of syncro lift and travel lift services,
will enable the industry to expand and attract new business and investment.
$100/m2
World-class
median earnings for
manufacturing
(NZ median: $43,520 p.a.)
estimated industrial land cost
(Port Nikau)
refit and repair firms
500
Largest
Second
employees in specialised
manufacturing
slipway in New Zealand’s
North Island
largest cluster of vessel building
and repair services in New Zealand
Attractive
Appealing
International clients
location for skilled labour
destination with a number of
marine-based tourist attractions
from United States, Canada
and Europe
NorthTec, the region’s tertiary
education institute, provides
training in mechanical and
electrical engineering at its
FutureTrades complex.
Northland has large areas of
available land to expand its
marine industry. A planned
173-berth extension of Opua
Marina will increase the capacity
of the industry to meet demand
from additional vessels.
Northland has a cluster of
engineering firms exploiting the
region’s natural advantage as
the closest marine engineering
precinct to southern cruising
routes.
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$41,910 p.a.
Heavy engineering facilities at the Whangarei marine precinct complement Auckland’s
engineering for lighter vessels.
Marine engineering firms at Whangarei offer services throughout New Zealand.
"There are few places in the world that can
match the Northland coastline and its scenic
attractions. With hundreds of visiting cruising
craft and superyachts, the support services and
facilities must meet international standards. As
the operations of this sector develop, there are
opportunities for both private investment and
joint ventures.”
– Peter Busfield, Executive Director at New Zealand
Marine Industry Association
“Our two companies are located on opposite sides of
the world but we share a common bond in that we are
both closely connected to the sea and share strong
maritime heritages, dating well before superyachting
became an industry.”
– Mark Wightman, Managing Director of Integrated
Marine Group on the announcement of the partnership
between Integrated Marine Group and the Spanish
Atollvic Shipyard.
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Adding Value to a Growing Harvest
Forestry is a well-established and significant part of the Northland economy due to the region’s warm climate,
rainfall and fertile soils.
Northland’s exotic timber harvest grew from 2.6 million in 2011 to 3.2 million by 2013 and this growth is
expected to continue. Northland’s logs, recognised for their superior strength and stiffness, along with
the region’s access to geothermal energy, make the region a compelling location for investment in the
manufacturing of engineered wood products.
$25,450 p.a.
$6,004 per hectares
Four international median earnings for primary
industries
low forestry land costs
(NZ average: $6,744 per hectare)
large-scale plantation owners
12%
202,600 hectares
Only 25%
of Northland’s workforce in
primary industries
of planted forest
of logs are processed locally,
indicating scope for additional
processing
Training
Renewable energy
65%
available through several centres
around Northland
provided by the Ngawha
geothermal field
of forest area is owned by
large-scale growers
The region has advanced primary
industry techniques taught
through vocational training
programmes and has a large
resident labour pool.
Northport is New Zealand’s
closest port to international
markets and has a large
industrial land bank. New
Zealand’s largest market
(Auckland) is accessible by road.
Northland has already attracted
global wood processors, such
as Juken New Zealand Ltd
(JNL), to the area, and there is
considerable scope for growth in
secondary processing.
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Professional degree and diploma programmes in forestry are offered outside of the region in
Canterbury and Rotorua.
Juken New Zealand and Hancock Resources have forestry holdings throughout New Zealand.
Carter Holt Harvey, one of Australasia’s leading forest
products companies, manufactures laminated veneer
lumber (LVL) at its Marsden Point plant. Technology
is key in this 30,000 square metre factory, one of the
largest and most sophisticated LVL manufacturing
plants in the world. CHH also owns a large modern
sawmill in Whangarei, as well as a number of other
New Zealand and Australian manufacturing sites.
Top Energy Ltd is an electricity generation and lines
network company that supplies most of Northland.
Established in 1935, it is one of the largest businesses
based in the region, managing assets of over $300
million and employing more than 200 staff.
Top Energy’s Ngawha geothermal power station,
commissioned in 1988, consistently produces
around 70 percent of all electricity consumed in
the Far North.
Expanding Aquaculture Sector
Northland is an important contributor to New Zealand’s fish and aquaculture production, providing for 10 percent
of the national value of the sector.
Aquaculture is the world’s fastest growing primary industry and Northland is well positioned to capitalise on this
with advantages in climate and resources. The region aims to achieve 20 percent annual growth over the next
15 years. This growth will be supported by the National Institute of Water and Atmospheric Research’s (NIWA)
aquaculture research centre in Bream Bay and the planned build of a land-based facility breeding fin fish.
Extensive coastline
144
median earnings for primary
industries
and productive climate for
aquaculture
fishing and aquaculture
businesses
4.5%
Access
$15 million
of New Zealand’s aquaculture
employees
to international markets from
Northport
of New Zealand’s oyster output is
produced by Northland
World-leading
Commercialising
aquaculture scientists
the world’s first land-based
kingfish farm
Local processing
facility
The Northland Aquaculture
Development Group stimulates
industry growth. Stakeholders
include farmers, local community
leaders, investment consultants,
NIWA and the Cawthron Institute.
The region’s available and
accessible coastal land,
sheltered harbours, moderate
offshore conditions and a mild
climate favour the production
of high-value temperate-water
species. The region also benefits
from local processing capacity
and its proximity to Auckland
and export markets.
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$25,450 p.a.
The region has a target of
doubling oyster and paua
output, a twenty-fold increase in
mussel output and a developing
kingfish industry worth over
$230 million by 2030.
Northland is well connected to national science institutions: NIWA has its largest facility in
Northland and has a network of offices throughout New Zealand; the Cawthron Institute,
headquartered in Nelson has the largest land-based aquaculture facility in NZ. It is one of the key
supporters of the Northland Aquaculture Development Group.
“There is unfettered global demand for premium
fish with a story to tell. Farming that fish in New
Zealand will respond to that demand by leveraging
the existing competitive advantages of the
region (climate, marine environment, workforce
and infrastructure) and the nation (positive
market recognition, an effective and transparent
environmental regulation, effective biosecurity and
food safety management).”
– Andrew Forsythe Chief Scientist Aquaculture,
National Institute of Water and Atmospheric
Research
Northland is well connected with national science
institutions. NIWA operates Australasia’s largest
aquaculture research and production facility at
Ruakaka in Northland. The mandate for the $20
million R&D facility is to develop capability and
transfer technology and knowledge of aquaculture
to increase economic growth through sustainable
management and use of aquatic resources. The Park
is an international hub for aquaculture and marine
science research and development. NIWA and its
partners host researchers from universities and
research institutes throughout the world.
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Who has invested in Northland?
Hancock Timber Resource Group (United States)
Hancock Forest Management is the property management subsidiary of the
Hancock Timber Resource Group (HTRG), which is the world’s largest timberland
investment manager for institutional investors. The company is responsible for the
day-to-day, on-the-ground timberland management services for HTRG’s investors
on approximately 1.21 million hectares across New Zealand and the United States.
Hancock Forest Management manages 48,000 hectares of Taumata Plantations
Ltd estate in Northland.
Juken New Zealand Ltd (Japan)
Juken New Zealand Ltd (JNL), a subsidiary of Japan-based Wood One Co Ltd,
manufactures high quality wood panels, engineered wood and solid wood
products. Wood One is the fourth largest company in house building products
in Japan.
In Northland, JNL manufactures one of its showcase products in its Triboard mill
in Kaitaia. Triboard is a three-layered panel with a wood-strand core sandwiched
between an MDF outer ‘skin’. The result is a clean-lined panel that has high
resilience and impact resistance and greater stiffness than other similar products.
JNL also has a veneer mill in Kaitaia, adjacent to the Triboard mill, which peels logs
for worldwide veneer sales.
Refining NZ
The refinery at Marsden Point, owned and operated by Refining NZ, is
New Zealand’s only oil refinery and provides all of the country’s jet fuel, nearly
80 percent of its diesel and around half of all petrol.
Refining NZ is listed on the New Zealand Stock Exchange and has New Zealandbased oil companies BP, Exxon Mobil (trading as Mobil), Z Energy Limited, and
Chevron (trading as Caltex) as its major shareholders.
The refinery is currently updating its petrol-making facilities via the $365 million
Te Mahi Hou project. Due online in late 2015, the project is expected to reduce the
refinery’s CO2 emissions through processing efficiencies and greater yields, while
lifting the company’s refining margins and processing revenues.
Shipco 360 (NZ / Spain)
Shipco 360 is owned by New Zealand-based Integrated Marine Group and
Spanish-based Vicalsa Group. The company purchased a shipbuilding and
manufacturing operation in Whangarei in January 2014. Vicalsa Group, one of
Europe’s leading marine, aviation and military engineering organisations, provides
the technical and logistic support needed to successfully design and build high
quality commercial vessels and marine equipment. The strong partnership has
rapidly enabled opportunities for both Whangarei and Vigo, Spain, facilities.
How Northland Compares
People
New Zealand’s
closest port to
international markets
18%
65 Years +
14%
35%
40-64 Years
Land usage by area
33%
Grassland & tussock for grazing
480,841 ha
25%
15-39 Years
32%
22%
0-14 Years
20%
0%
Northland
20%
40%
New Zealand
Housing prices* ($000)
$430
Northland
New Zealand
*Average price as at May 2014, sourced from Real Estate
Institute of New Zealand
39%
Forestry
152,261 ha
9.4%
Horticultural land
5,072 ha
4.0%
Grain & crop land
2,773 ha
0.6%
All other
116,435 ha
7.8%
$183
Whangarei
*Mid-point price based on highest grade of office space and
may include new build rates, sourced from Colliers International
Employment rate
Overall life
satisfaction
Average household
income (2013)
56%
88%
$69,300
65%
87%
$88,400
Northland
of all school leavers
achieved university
entrance standard
(2012)
4.5%
Average net office rent* ($/m²)
$325
Education
% of New Zealand
New Zealand
Northland
New Zealand
Northland
New Zealand
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Welcoming Investors
David Wilson
CEO, Northland Inc Ltd
Northland Inc Ltd is the region’s economic development agency (EDA).
This agency aims to provide vision, aspiration, leadership and
unity-of-purpose in sustainable economic development for Northland
through all its communications and stakeholder engagement. Northland
Inc works with key industry sectors in Northland to address market
failures, facilitate value-added activities and value chain improvements,
increase exports, and provide business, job and investment opportunities.
T +64 9 438 5110
W northlandinc.co.nz
The EDA’s goals and strategy
How the agency helps the investor
Northland Inc plans to deliver on this objective by:
•Sector development with the focus on growth in
performance and profitability thus increasing GDP
and employment
•Submitting well-researched and prepared
economic development projects for funding
consideration by NRC’s Investment and
Growth Reserve
•Facilitating increased productivity in primary
industries
•Encouraging the development of increased
processing and manufacturing
•Supporting innovation
•Advocating the development of new enabling
infrastructure
•Promoting the region to visitors and investors
•Developing an economic development action
plan for Northland to strengthen and diversify
the economy.
•Enterprise support with the aim of increasing the
capability and resilience of local business and
assisting innovation at a business level
•Regional knowledge and understanding of the
actions and investments that will strengthen
and diversify the economy and communicating
effectively the regional development messages
•Investment analysis and organisational support
that assists the two points above
•Developing and assessing applications to the
Northland Regional Council’s Growth & Investment
Fund and other project funding applications.
Region-led initiatives
Northland Inc is working on landing a planned international cable in Northland that would create an attractive
investment opportunity to develop international data processing centres for Australia, Asia and the United
States, and further diversify the regional economy.
This document was produced by New Zealand Trade and Enterprise, New Zealand’s international business development agency. www.nzte.govt.nz
© Copyright New Zealand Trade and Enterprise (NZTE) 2014.
Disclaimer: No part of this publication may be distributed or copied for any commercial purpose nor incorporated in any work or publication without
the prior written consent of NZTE. The information contained in this publication is intended as a guide only. Professional advice should be sought before
applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this document, NZTE does
not accept liability for any errors it may contain.
ISBN 978-0-478-41623-7 1 July 2014
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REGIONAL INVESTMENT | AUCKLAND
Auckland
Auckland is recognised for its food
and beverage sector, high-value
manufacturing, and as a centre for
New Zealand’s developing ICT industry.
The region is New Zealand’s largest and
most populous, with 35 percent of the
country’s economy. Auckland is a global
centre for trade and investment.
Auckland is investing in infrastructure to
accelerate its productivity. Its innovative,
high-tech industries make it an attractive
investment location.
Regional Highlights
Global food
manufacturing
powerhouse
High-value
manufacturing hub
Innovative and dynamic
ICT service sector
Dynamic ICT sector
Auckland offers attractive opportunities to invest
in its growing ICT and services sector and to take
advantage of shared time zones with international
markets. Many global ICT companies are choosing
Auckland to service the Asia Pacific region.
Food manufacturing powerhouse
Auckland is home to food and beverage manufacturers’
head offices. The sector is well supported by national
food technology institutions and a modern food pilot
production facility. Investment will be required to meet
increasing global demand.
High-value manufacturing hub
Auckland is an attractive investment proposition for
high-value manufacturers specialising in knowledgeintensive, low-volume production. It has a ready
supply of innovative workers, high quality engineering
research and access to advanced materials.
Auckland
Internationally
rated city
9
10
Powerful Economic Engine
Auckland has the heaviest concentration of the nation’s financial services and manufacturing businesses, and
is home to many head offices that manage marketing and supply chain functions for their national networks.
Sixty-six percent of New Zealand’s top 200 companies and 31 percent of firms overall, as well as more than
600 international companies, are located in Auckland. Auckland has five tertiary institutions and four Crown
Research Institutes (CRI).
Manufacturing companies are clustered near New Zealand’s largest and busiest international airport and
container port. Auckland is an international centre of excellence in marine engineering, and is developing a
new innovation precinct (GridAKL) in an attractive waterfront environment.
The FoodBowl
a global product
development facility
New Zealand’s
leading port
by container numbers
Third
Five
most livable city in
the world
tertiary institutions
Whangarei –
2 hours by road
Massey
University
1.5 million
people
2.5 million by 2040
Waiheke Island
vineyards and wineries
Marine innovation
cluster
Gameloft
Auckland CBD
Auckland Film Studios
in Henderson
SAP AG
Nestlé
Port of Auckland
Waitemata Harbour
University of Auckland
Auckland University
of Technology (AUT)
UNITEC Institute
of Technology
State Highway 1
Waitakere Ranges
Manukau Harbour
The FOODBOWL
(Te Ipu Kai)
Auckland International Airport –
direct flights to Australia, China
and the United States
Manukau Institute
of Technology
Manufacturing
precinct
Hamilton –
1 hour 30 minutes
by road
Asahi
Tauranga –
2 hours 30
minutes by road
Dynamic ICT Sector
Auckland’s vibrant ICT sector continues to grow strongly, driven by business innovation and the
commercialisation of research by the city’s three universities.
Global ICT companies have a strong presence in Auckland, utilising the city as a hub to service the Asia Pacific
region. The sector has grown rapidly in both value and employment in the last decade and a proposed new
innovation precinct in the city centre will create further opportunities for growth and investment.
Globally connected
55%
median earnings for information
media and telecommunications
one flight from major markets,
such as the West Coast in
the United States, China and
South America
of New Zealand’s ICT GDP
53%
48,000 m2
16
of New Zealand ICT employees
are based in Auckland
proposed new innovation centre
multinationals in Auckland
45,000+
Five
15
with tertiary level qualification
tertiary institutions with
multiple research facilities and
commericalisation arms
businesses in Deloitte Technology
Fast 500 Asia Pacific index
The IBM Delivery Centre and
the Concentrix Delivery Centre,
both based at Unitec Institute
of Technology, gives students
access to valuable industry
experience preparing them for
the employment marketplace.
Auckland’s well-developed
infrastructure in research,
telecommunications and global
connectivity supports its
technology sector.
Auckland has attracted a number
of multinationals, including SAP
and Gameloft. A growing crop
of high-tech startups, such as
Booktrack, DataSquirt and Right
Hemisphere have matured and
gone global.
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$53,160 p.a.
Unitec Institute of Technology, Auckland, has three campuses in the region. It is also the base
of the IBM and Concentrix delivery centres in New Zealand.
The Icehouse, a business growth centre and startup incubator based in Auckland, runs
nationwide events, workshops and programmes for entrepreneurs and business owners to
help develop their capabilities.
Orion Health has grown from
a specialist integration vendor
based in Auckland, into a global
leader in e-health, providing a
comprehensive suite of software
solutions and employing more
than 1,100 staff across 27 offices
worldwide.
Auckland-based Wynyard Group
is a leader in critical threat
assessment and advanced
crime analytics software for
government, financial services and
national infrastructure providers.
The company has customers
worldwide, including Fortune
500 companies and government
security agencies, and has offshore
offices in the United Kingdom,
United States, Canada, United
Arab Emirates and Australia.
Booktrack creates synchronised
soundtracks for e-books that
automatically match music, sound
effects and ambient sound to
reading speed, creating an immersive
reading experience. Booktrack titles
have been downloaded in more
than 100 countries, and its partners
include Weta Digital. Booktrack now
has business development offices
in Hong Kong and San Francisco,
while the research and development
remains in Auckland.
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Food Manufacturing Powerhouse
Auckland is the centre of power for New Zealand’s food and beverage manufacturing sector, with a
concentration of head offices, value-added manufacturing and distribution operations.
The region’s skilled pool of labour, research and development, excellent transport and distribution links to
international markets, and agricultural products support investment to meet further export-led demand.
$45,710 p.a.
33%
$3 billion
median earnings for
manufacturing
of all freight transport and
logistics companies
contribution to Auckland
economy
40,000
Major container port
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employees in food processing
1,600 commercial vessels a year
global food manufacturing plants
Innovative
1,000+ hectares
1,000
commercial food and beverage
researchers
of industrial land available for
development
food and beverage firms
Auckland’s food and beverage
processing is well supported by
sectors ranging from advertising
and design to engineering and
R&D.
The city has high-tech
processing facilities available for
companies to pilot commercial
food and beverage development
at the FoodBowl.
All of New Zealand’s top 50
food and beverage processors
are located in Auckland, with
international firms including
Jack Link’s (US), Nestlé
(Switzerland) and Asahi (Japan).
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The FoodBowl (Te Ipu Kai) is part of the national collective of science and technology
resources in the New Zealand Food Innovation Network, which has offices in Waikato,
Manawatu and a planned facility in the South Island.
New Zealand government research institutes - Plant & Food, AgResearch, NIWA and Landcare
– all have offices in Auckland that form part of their national networks.
Emerald Foods Group has
established a global franchising
network and sells its premium
New Zealand Natural ice cream
globally in 25 countries. A notable
development is the growth of the
firm in the Middle East. The ice
cream is shipped from Auckland in
frozen containers.
Frucor, a beverage company,
launched its founding brand
‘Fresh Up’ 50 years ago. The
company sells 24 brands, including
its V energy drink range, in
New Zealand, Australia and several
other markets. In 2013, Frucor
announced a $45 million innovation
and technology investment
programme at its South Auckland
plant. The company’s turnover
is more than $700 million and it
employs over 800 people.
The FoodBowl is an open-access plant
dedicated to advancing innovation
and business in the food sector. The
plant allows businesses scope to
develop innovative new products and
the use, application and scale-up of
new processing technologies.
It also provides an interface
between businesses and research
partners to enable the effective
commercialisation of research. More
than 75 clients have used the facility
since it was established.
A High-Value Manufacturing Hub
Auckland is a manufacturing hub for a range of high-value industries including agricultural technology, marine
and aviation. The flexibility of Auckland’s manufacturers to offer customised short-run production cycles is a
key global advantage.
The availability of innovative workforce and advanced materials in metal, plastics and composites creates an
attractive opportunity for investors.
Entire new areas of Auckland’s waterfront are being revitalised and developed. This development will make the
waterfront an attractive location for the marine sector and other innovative and creative industries, as well as a
vibrant spot for tourists.
$45,710 p.a.
Fifth
$1.2 billion
median earnings for
manufacturing
largest marina in the world
and deep-water access for
superyacht repair
annual sales in marine industry
6,000
Nine
14
employees in the marine
engineering sector
research and science facilities
aviation design companies
Commercialisation
New Zealand’s
largest
2,500
of university research from
UniServices and AUTEL
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Auckland has the largest
share of apprentices in the
marine engineering sector
with the New Zealand Marine
Industry Training Organisation
based there.
international container port
machinery and equipment
companies
Auckland has a number of
research and development
facilities, including university
and industry partnerships,
which are developing high-value
export products.
A specialised high-value
manufacturing cluster is
being developed involving
33 companies, with a goal of
doubling turnover within the
businesses in five years.
Callaghan Innovation is a government agency that supports business innovation through
funding, advice, and research and technical services. It has offices and labs in Auckland,
Wellington and Christchurch.
The New Zealand Product Accelerator is a manufacturing materials network connecting national
institutes and companies from across the country and is based at The University of Auckland.
Buckley Systems is a New Zealandbased engineering manufacturer.
Its operations are based in
Auckland with a sales office in
Boston, USA, and Nelson, Canada.
The firm produces electromagnets
to be used in the manufacture of
silicon chips and has diversified
into production for the medical
field. Buckley Systems has also
established a multi-million dollar
supply contract with Toshiba.
Alloy Yachts, an Auckland-based
company, has developed into a
superyacht icon, synonymous with
luxury, seaworthiness, engineering
excellence and craftsmanship.
The company has a proven track
record with many international
awards and enjoys the confidence
of leading naval architects, interior
designers, project managers,
captains and a growing worldwide
community of repeat and new
satisfied owners.
Tru-Test Group is a global agritech
business based in Auckland. TruTest manufactures and exports
livestock and pasture management
technologies. The company is the
world’s leading manufacturer of
livestock weighscale systems, milk
metering, milk cooling and storage
equipment, and has a major share
in the global market for electric
fencing and traditional fencing
tools. Tru-Test Group brands are
available in over 100 countries.
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Who has invested in Auckland?
Asahi (Japan)
Asahi is a major Japanese food and beverage company with net sales of
JPY1,579.1 billion (approximately NZ$18 billion). Asahi Beverages recently acquired
two Auckland beverage companies, Charlie’s Trading Company Limited for
$129.3 million and Independent Liquor for $1.5 billion.
Charlie’s, which is now called The Better Drinks Company, is a leading
manufacturer of premium soft drink and carbonated beverages in New Zealand.
Independent Liquor is a large multi-beverage alcoholic drinks manufacturer with
plants in New Zealand and Australia. Independent Liquor has an extensive export
business in the Pacific, Asia and in Canada and the United States.
Gameloft (France)
“We set up here because there are very good 3D artists and animators in
New Zealand. When it comes to 3D, we have some very strong hitters in the
industry. We want to hire more New Zealanders – the more locals we can get
the better.”
– Patrick Wagner, Studio Director’s comments on their investment in
New Zealand
Gameloft is a global developer and publisher of video games for mobile phones
and consoles. The company is headquartered in France. In 2010, Gameloft
established a new game development studio in Auckland to develop new games
for international markets. Gameloft is now the largest mobile video games
development studio in New Zealand.
Nestlé (Switzerland)
A world-leading food and beverage company, Nestlé SA was founded in 1866 and
is headquartered in Vevey, Switzerland. The company operates 447 factories and
employs 330,000 people around the world.
Nestlé New Zealand, a subsidiary of Nestlé SA, is a major player in the country’s
food industry, employing more than 650 people, marketing more than 750
products to New Zealanders and exporting over $60 million primarily to Australia
and Japan.
SAP AG (Germany)
SAP is the global market leader in enterprise application software, enabling more
than 258,000 customers in 130 countries to operate profitably, adapt continuously,
and grow sustainably. SAP Australia and New Zealand was established in 1989 as a
market unit within the global SAP AG organisation, with immediate market impact.
Today, with 900 employees, SAP Australia and New Zealand supports more than
2,500 local organisations of all sizes and across industries through continuous
digital innovation.
In 2011, SAP AG acquired Auckland-based Right Hemisphere, which, under the
name of SAP Visual Enterprise, continues to develop 3D modelling software that
supports manufacturing processes for organisations across the globe.
How Auckland Compares
People
Auckland has over a third
of the population and 35%
of New Zealand’s GDP
12%
65 Years +
14%
32%
40-64 Years
Land usage by area
33%
147,750 ha
36%
15-39 Years
32%
21%
0-14 Years
20%
0%
Auckland
20%
40%
New Zealand
Housing prices ($000)
$430
Auckland
New Zealand
55%
Forestry
34,457 ha
2.1%
Horticultural land
8,271 ha
6.5%
Grain & crop land
2,938 ha
0.6%
All other
32,586 ha
2.2%
$430
$183
Auckland CBD
Employment rate
Overall life
satisfaction
Average household
income (2013)
64%
87%
$99,700
65%
87%
$88,400
Auckland
achieved university
entrance standard
(2012)
1.4%
$625
Education
% of New Zealand
New Zealand
Auckland
New Zealand
Auckland
New Zealand
15
Welcoming Investors
Auckland Tourism, Events and Economic Development (ATEED) is an
Auckland Council organisation, established to lift the region’s economic
performance.
Tasked with supporting Auckland’s growth and competitiveness, ATEED
champions an integrated approach to developing business sectors across
the region, working with central government and the private sector to
maximise benefits for Auckland.
Mark Ford
Manager Business Attraction
and Investment, Auckland
Tourism, Events and
Economic Development
T +64 9 365 0531 E [email protected]
W aucklandnz.com/invest
Regional economic development strategy
ATEED’s strategy is to help Auckland become:
ATEED’s Business Attraction and Investment team
works to continually increase Auckland’s productivity
and create sustained economic growth.
•A global centre of excellence for high-growth
economic sectors
•A recognised innovation and entrepreneurial hub
of the Asia-Pacific rim
•A city with a visitor economy that supports
amenities Aucklanders enjoy
•Nationally and internationally recognised as having
exceptional visitor and event experiences
•A brand that unifies and inspires the city’s
residents, businesses and visitors.
The team helps the investor from initial market entry
to expansion strategies with:
• Aligning their interest to the most appropriate
opportunities
• Business case development
• Talent and labour analysis
• Property solutions
• Post-investment support.
The Industrial and Commercial Bank of China (ICBC) is the largest bank in the world by market value with
assets of more than US$3 trillion. In February 2014, Dr Jiang Jianqing, the Chairman of ICBC, officially opened
ICBC New Zealand in Auckland. This was the first Chinese bank to be established in the country. ATEED
supported ICBC’s investment in New Zealand by extending a Mayoral welcome and support, identifying a
range of possible locations for the bank’s premises, suggesting potential directors for ICBC to consider for its
New Zealand board, providing guidance and referral to agencies on staff recruitment and visas, and working
on potential commercial partnerships of interest to the bank. ATEED continues to provide post-establishment
support services to ICBC through its regional aftercare programme.
ISBN 978-0-478-41632-9 1 July 2014
16
REGIONAL INVESTMENT | WAIKATO
Waikato
Waikato is an agricultural
powerhouse and a key contributor
to New Zealand’s dairy industry,
as well as offering strengths in
manufacturing.
Waikato is part of the golden triangle
connecting Hamilton, Auckland and
Tauranga, making it a convenient access
point for freight and logistics.
There are investible opportunities in dairy
processing, high-value manufacturing
and an expanding logistics infrastructure.
Regional Highlights
Dairy production
powerhouse
High-value
manufacturing
Key logistics
location
Agri-technology
innovation
High-value manufacturing
Waikato’s strong and innovative agricultural technology
and aviation industries have driven the development
of a vibrant manufacturing base, creating investible
opportunities in new products and technologies.
Expanding logistics hub
The Waikato region is centrally located on a nationally
significant infrastructure corridor. Primary production
and manufacturing exports are transported via major
sea ports at Tauranga and Auckland. The Waikato
Expressway will create the key strategic corridor for
the Waikato region and will solidify Waikato’s position
as a logistics hub.
Added-value dairy products
Dairy farming productivity increases are creating
further growth capacity which, combined with the
availability of industrial land, offers investment
opportunities in high-value dairy processing.
Waikato
17
18
An Agricultural Powerhouse
Waikato is the fourth largest contributor to the New Zealand economy and is home to 9 percent of the nation’s
workforce. Hamilton, Waikato’s capital city, produces nearly two-thirds of the region’s manufacturing exports.
Waikato is home to the Waikato Innovation Park and an aviation cluster at Hamilton Airport. It is a key part of
the golden triangle connecting Hamilton, Auckland and Tauranga in the Bay of Plenty, and representing around
two million people.
Waikato has good infrastructure provision and excellent research and education resources. The region has eight
major food processing firms driven by a powerful agricultural economy.
Eight
Leading dairy
producer
global food
processing firms
Innovative
Golden triangle
99 patent applications
per head
(NZ average: 74)
the connection
between Auckland
and Tauranga
Auckland – 1 hour
30 minutes by road
University of
Waikato
is a leading
New Zealand university
Coromandel Peninsula,
aquaculture farms and forestry
Yashilli – dairy
processing plant
State Highway 2
Port of Tauranga
– 1 hour by road
State Highway 1
Sealed Air
Corporation
Tetra Pak
Waikato Innovation
Park and AgBio
cluster
Fonterra
(Crawford Street) –
dairy processing plant
Waikato Institute
of Technology
Planned Ruakura
inland port
Hamilton
Aviation cluster
Open Country
Dairy
University
of Waikato
CRV Ambreed NZ
Hamilton Airport –
Wellington –
6 hours by road
State Highway 3
Kaimai Ranges
Taupo – 1 hour
45 minutes by road
High-value Manufacturing
Waikato’s strong agricultural and food processing sectors are the driving force behind the development of the
region’s manufacturing and engineering industries.
The region is a leading hub for agricultural and biotech businesses, supported by the Waikato Innovation Park.
Investible opportunities are being created by commercialising research such as biotechnology firm ZyGEM,
human and animal health firm Quantec, and environmental monitoring firm iQuest.
$44,050 p.a.
median earnings for
manufacturing
Multiple industrial
sites
Aviation industry
cluster
engaging 30 aviation businesses
20,000
Renewable energy
2,000+
employees in manufacturing
generation from hydro,
geothermal and wind sources
small manufacturing firms
Vocational training
Innovative
99
at the Waikato Institute of
Technology
research facilities
patent applications per head
(NZ median: 74)
Waikato is commercialising
research and development in
biotechnology and engineering
through WaikatoLink, the
commercial arm of the
University of Waikato.
Waikato Innovation Park is
home to 50 companies and
offers local and international
networks, funding networks
and modern commercial and
laboratory facilities.
The region is known for its
strong clusters of manufacturing
firms, with an agriculturalbiotechnology (AgBio NZ)
cluster working in a range of
agricultural and biological areas
from genetics to animal health.
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available for industrial
development
The University of Waikato is part of the Bay of Plenty Tertiary Education Partnership
with Bay of Plenty Polytechnic, Te Whare Wānanga o Awanuiārangi and Waiariki Institute
of Technology.
The region’s manufacturing sector is strongly linked to Auckland, with many firms basing their
head offices or complementary manufacturing plants there.
The Gallagher Group is a global
leader in the innovation and
marketing of animal management,
security, fuel systems and contract
manufacturing solutions. The
Gallagher Group was founded by
Bill Gallagher Senior, inventor of
New Zealand’s first electric fence.
With headquarters in Hamilton,
Gallagher also has an international
network of regional offices
and independent third-party
distributors.
Pacific Aerospace, the second
largest aircraft manufacturer in
the Southern Hemisphere, has
manufactured more than 650
aircraft for global markets since it
was first formed more than 50 years
ago. Today, more than 120 staff
operate in a lean manufacturing
environment to build utility and
training aircraft that perform
where others can’t. The vertically
integrated operation includes
design, certification, component
manufacture and assembly.
NDA Group is a world leader in
the specialised manufacturing of
stainless steel process vessels and
heat exchangers for industry, and
the provision of other engineered
products and services. Based in
Hamilton, the company’s precision
manufacturing capability and
commitment to global service
excellence have been demonstrated
by the strong growth of its
operations in New Zealand, Australia
and the United States of America.
19
Expanding Logistics Hub
Freight movements between Hamilton, Auckland and Tauranga represent over half of all national freight
movements, offering investment opportunities in an expanding regional hub for freight and logistics.
Economic activity will be further supported by a proposed inland port in Hamilton, on an 820-hectare site with
access to inter-regional road, rail and air transport.
$42,080 p.a.
Available land
25%
median earnings for construction
for logistic-based development
at Northgate Business Park
of New Zealand’s land freight
moments start, end or travel
through the Waikato
11,000
16%
227,404 km
employees in the construction
sector
of the national state highway
network
more than double the national
average of heavy vehicle
kilometres travelled
Supportive
8.5%
Global
regional stakeholders engaged to
develop infrastructure
of the national rail network,
linking Waikato to sea ports at
Auckland and Tauranga
packing and distribution
companies
The region’s central location
enables it to access skilled
labour from Auckland and other
surrounding regions.
Nearly 45 percent of the
national total of rail freight,
originates in, has a destination
in, or passes through the
Waikato region.
Freight movements are
generated by Waikato’s
connections to other regions,
in particular the major export
sea and air ports of Auckland
and Tauranga and the food
processing and manufacturing
industries of Hamilton.
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Waikato is part of the Upper North Island Strategic Alliance, which is developing a shared
approach to investment and infrastructure across the four regions.
Tainui Group Holdings, which is one of the co-owners of the Ruakura site, holds property
throughout Waikato and Auckland.
A proposed $3.3 billion inland freight and logistics
hub at Ruakura is a development being led by
Tainui Group Holdings (TGH). The inland port is the
cornerstone of the planned Ruakura project. The
proposed site is equidistant to the ports of Auckland
and Tauranga, whilst the East Coast Main Trunk
railway line runs through Ruakura. The proposed new
Waikato Expressway (scheduled to be completed in
2019) will be on its eastern boundary.
The new freight hub will complement an existing
Crawford St facility owned by Fonterra. Fonterra
(Crawford Street) stores collect a third of all
Fonterra’s ingredients in the Waikato and Bay of
Plenty, distributing 33,000 containers of milk powder
and cheese every year. The cool store distributes
more than 235,000 tonnes of chilled and frozen
finished products annually to more than 70 countries
including Japan, Iran and Australia. Fonterra Crawford
Street is integrated with the KiwiRail network, linking
up Fonterra’s manufacturing sites around the Central
North Island.
Added-value Dairy Products
Waikato is predominantly a dairy centre, producing more than a quarter of New Zealand’s milk supply.
Together with a ready supply of industrial land, a planned increase in irrigable land will increase dairy farming
productivity and unlock further investment opportunities for global food processors.
$44,050 p.a.
Industrial land
Eight
median earnings for
manufacturing
available with access to airport
global food processing plants
17,000
24%
agricultural employees
of the national dairy herd
International
investment
eg new $250 million Yashili
dairy plant
Renewable energy
Leading
agricultural industry trainees
with 75% of the nation’s
geothermal resources
dairy-producing region
(28% of New Zealand’s dairy herd
and 27% of milk solids)
AgResearch, DairyNZ, University
of Waikato, WINTEC, NIWA,
Landcare Research, Lincoln
University, Waikato Innovation
Park and the Hamilton City
Council are cooperating to form
the Waikato AgriHub to help
deliver on New Zealand’s goal to
double primary industry exports
by 2025.
FoodWaikato is an open-access
spray-dryer facility with a
half–tonne per hour capability.
It is presently expanding that
capability to allow for full
nutritional formulations. It is
owner operated by Waikato
Innovation Park to facilitate the
development of new value-added
products and export markets.
The region is building on its
knowledge of agricultural
production. Companies like Dairy
SolutioNZ design and integrate
technologies for large-scale
offshore pastoral farms using
systems and expertise from local
partners.
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1,000+
The New Zealand Food Innovation Network is a national network of science and technology
resources supporting the growth and development of New Zealand food and beverage
businesses. FoodWaikato forms part of this national network.
AgResearch is a Crown Research Institute supporting the pastoral, agrifood and agritechnology
sector with a main campus in Ruakura and three other campuses in New Zealand.
Founded in 1914, the Tatua Cooperative Dairy Company is the
oldest independent dairy company
in New Zealand. Tatua exports
94 percent of its products to
more than 60 countries worldwide
each year. Tatua’s business
focuses on six key areas: dairy
ingredients, specialty nutritionals,
flavour ingredients, bionutrients,
foodservice, and consumer
products. Tatua’s head office and
manufacturing facility is situated in
Tatuanui, near Hamilton.
Open Country Dairy’s Waharoa
site is supplied milk by local
dairy farms located near the
iconic Kaimai Hills that border
the Waikato Plains. This site
specialises in UHT-grade whole
milk and skim milk powder,
including fortified varieties as well
as a range of dry salt cheddar
style cheeses, anhydrous milk fat
and whey protein concentrate.
All products are certified to EU,
Kosher and Halal standards.
Livestock Improvement Corporation
(LIC) is a dairy-farmer cooperatively
owned, farm-improvement
company, with revenues of $200m.
The company provides diverse
products and services to the dairy
and deer industries in New Zealand
and internationally. Best known
as a provider of dairy semen
for artificial insemination, it also
offers many other products and
services including milk testing,
herd recording, farm management
software and automation.
21
22
Who has invested in Waikato?
CRV Ambreed NZ and Liberty Genetics (The Netherlands)
CRV AmBreed NZ and Liberty Genetics are part of the third largest artificial
cattle-breeding company in the world with around 27 percent market share in
New Zealand. CRV is one of the leading herd-improvement companies in the
world with offices and breeding centres in The Netherlands, Belgium, Australia,
New Zealand, Germany, Luxembourg, South Africa, Brazil, the United States, the
Czech Republic and Spain.
CRV exports semen to about 50 other countries through a distributor network.
CRV Ambreed and Liberty Genetics have their Oceania head office in Hamilton,
New Zealand and CRV has its global head office in Arnhem, The Netherlands.
CRV Oceania specialises in grazing genetics focusing on the efficiency and
sustainability of New Zealand’s dairy farm systems.
Sealed Air Corporation (United States)
Sealed Air Corporation creates a world that feels, tastes and works better. In
2013, the company generated revenue of approximately $7.7 billion by helping
customers achieve their sustainability goals in the face of today’s biggest social
and environmental challenges. The company’s portfolio of widely recognised
brands, including Cryovac® brand food packaging solutions, Bubble Wrap® brand
cushioning and Diversey™ cleaning and hygiene solutions, ensures a safer and less
wasteful food supply chain, protects valuable goods shipped around the world,
and improves health through clean environments. Sealed Air has approximately
25,000 employees who serve customers in 175 countries.
In 2013, Sealed Air opened a $20 million extension of its Hamilton-based plant. The
extension is used for the production of Multiwall sacks for exporting milk powder.
Tetra Pak (Sweden)
Tetra Pak® built New Zealand’s only independent spray dryer for milk formula
at Waikato Innovation Park. The spray dryer is used for test runs of nutritional
formula, specialty dairy powders, and a range of non-dairy products for future
upscale for commercial production.
Headquartered in Sweden, Tetra Pak is the world’s leading food and beverage
processing and packaging solutions company with 23,000 employees worldwide,
including more than 100 in New Zealand. For more than 60 years, Tetra Pak
has delivered innovative products and services to customers worldwide. The
company’s strength as a total system supplier means it works with customers to
improve the efficiency, productivity and system cost of their production lines.
Yashili New Zealand Dairy (China)
Yashili is part of a major group that leads the dairy market in China. It is one of the
‘big three’ producers of infant milk formula for the Chinese market. It is also one of
the leading suppliers of soymilk powder, cereal, rice flour and milk powder to the
Chinese market.
Yashili’s Pokeno plant located in the Waikato region is expected produce 52,000
tonnes of milk powder for infant formula per annum and employs over 120 people.
Pokeno is strategically located on main trunk railway at the crossroads of State
Highways 1 and 2. The township is less than an hour from Hamilton and 35 minutes
from downtown Auckland, 20 minutes to Manukau City centre and 10 minutes
from downtown Pukekohe.
How Waikato Compares
People
The region produces
more than a quarter of
New Zealand’s milk supply.
15%
65 Years +
14%
32%
40-64 Years
Land usage by area
33%
1,156,782 ha
31%
15-39 Years
32%
22%
0-14 Years
20%
0%
Waikato
20%
40%
New Zealand
$331
$430
Waikato
New Zealand
40%
Forestry
246,667 ha
15.2%
Horticultural land
8,306 ha
6.5%
Grain & crop land
22,711 ha
4.9%
All other
149,624 ha
10.1%
$250
$183
Hamilton
Employment rate
Overall life
satisfaction
Average household
income (2013)
64%
85%
$82,100
65%
87%
$88,400
Waikato
achieved university
entrance standard
(2012)
10.9%
Average net office rent* ($/m2)
Education
% of New Zealand
New Zealand
Waikato
New Zealand
Waikato
New Zealand
23
Welcoming Investors
The Waikato Chamber of Commerce supports sustainable and
profitable business growth in the region and is the first point of contact
for investors.
Sandra Perry
Chief Executive, Waikato
Chamber of Commerce
T +64 7 838 3676
W waikatochamber.co.nz
The Chamber has close connections with economic development units
(EDUs) at local government level including Hamilton City and rural
districts, as well as private sector suppliers of goods and services.
Goals
How the chamber helps the investor
•Identify strategic priorities and areas of focus
to transform the region and to guide regional
economic development policy, investment and
activities
•Uses regional knowledge, relationships and
coordination skills to make connections into and
within the region for international businesses
•Leverage value from its location and connections
as the key servicing hub of the North Island
•Provide a quality education that encourages high
levels of participation and lifelong learning
•Become New Zealand’s premier engineering and
primary processing hub
•Acts as a conduit for investors to discuss their
interests with EDUs, local and national government
agencies in the region, ensuring that the right
connections are made
• Brings together industry, local and central
government agencies, research, science and
education providers and other parties to work
together on regional investment projects.
•Be known for excellence in sustainable food
production, agri-research and agribusiness.
The Waikato District Council was actively involved in securing the Yashili infant formula dairy processing plant.
The Council worked closely with Dine Fulton Hogan, a joint venture land-development company that led the
process. The Council provided executive team support, as well as establishing a wrap-around project team to
manage the consenting processes. The Council was also involved in the negotiation of infrastructure costs,
development contributions and facilitation of discussions with third-party infrastructure providers. Feedback
from Yashili was that having direct access to Council’s executive team was highly valuable.
ISBN 978-0-478-41633-6 1 July 2014
24
REGIONAL INVESTMENT | BAY OF PLENTY
Bay of Plenty
The Bay of Plenty is known for
its geothermal energy, forestry,
horticulture and tourism.
The region has the largest plantation
forest resource and is the largest producer
of avocados and kiwifruit in New Zealand.
It is a significant dairy producer and has a
developing aquaculture industry, creating
further food processing opportunities.
The geothermal energy resource can
be further developed to unlock wood
processing opportunities.
Regional Highlights
Geothermal energy
advantage
New Zealand’s
forestry heartland
Clean
coastal waters
New Zealand’s largest
international port
Concentrated wood supply
The Bay of Plenty has New Zealand’s largest area of
plantation forest. The region’s sustainable supply of
wood and geothermal energy can be further leveraged
by wood processors to add competitive value.
Powering food production
The Bay of Plenty’s strong primary sector has
potential to grow through horticulture and alternative
dairy industries. Establishing New Zealand’s largest
marine farm in Eastern Bay of Plenty will create
significant opportunities. Geothermal energy will
create additional food manufacturing opportunities.
Innovative manufacturing sector
The region is building on its expertise in
engineering and technology to support wood
processing, agricultural, titanium and geothermal
industries to develop an innovative high-value
manufacturing capacity.
Bay of Plenty
25
26
A National Gateway
The Port of Tauranga is a major driver of economic activity in the region and is New Zealand’s largest seaport
for exports. The region has 227km of railway, the most densely used section of the national rail network,
carrying over a third of its traffic.
Tauranga and the Western Bay of Plenty account for 57 percent of the region’s population and 58 percent of its
employment. This is followed by Rotorua, a renowned tourist destination for international visitors and home to
25 percent of the region’s population.
The region has considerable geothermal activity based on the Taupo volcanic zone, which provides a reliable
source of energy for a range of different business operations.
33%
Centre
78%
10
A leading
of New Zealand’s
forestry sector
of New Zealand’s
planted kiwifruit area
geothermal
power plants
international tourism
destination
Port of Tauranga –
international port
C3 portside
logistics
Tauranga Airport –
Tauranga
Dentsply NZ
Auckland – 2 hours
30 minutes by road
Hancock Timber
Resource Group
Newnham Park Horticultural
Innovation Centre
Whakatane
State Highway 36
Sequal Lumber
Rotorua Airport –
Rotorua cultural and
tourist attractions
Red Stag Timber
State Highway 30
State Highway 5
Opotiki
aquaculture farms
Kawerau
State Highway 2
Rotorua
State Highway 1
of national exports
by value leave from
Port of Tauranga
Scion and Waiariki Institute
of Technology forestry centre
of excellence
Wood processing
centre, with OJI Paper,
Norske Skog and Asaleo
Te Urewera National
Park and Lake
Waikaremoana
Taupo – 1 hour by road
Taupo Airport –
Taupo
Central North Island
forestry plantations
High Quality, Cost-Effective Wood Supply
Located in the Central North Island, the Bay of Plenty is at the centre of New Zealand’s forestry sector. The
wider region has the largest plantation resource, producing 25 percent of the total exotic timber harvested
in New Zealand. The Central North Island has more than five million cubic metres per year of uncommitted
harvest available for processing.
Bay of Plenty’s abundance of geothermal energy and wood generates opportunities for investment in
processing, wood fibre products and biofuels.
Globally leading
Highest capacity
industries
geothermal supply for direct
industrial use
sawmill in New Zealand operated
by Red Stag Timber
16%
30%
Largest producer
of New Zealand’s forestry
workforce
of the country’s total
plantation forests
of wood products in
New Zealand
Centre of excellence
60%
for forest and wood at Waiariki
Institute of Technology
of New Zealand’s forestry
products are exported from Port
of Tauranga
Strong engineering
capability
Scion is a Crown Research
Institute based in Rotorua.
Scion specialises in innovative
research, science and technology
development for the forestry,
wood product and biomaterial
sectors.
Bay of Plenty has substantial
reserves of high quality
geothermal steam that can
be used for timber drying
and other process heat
requirements, freeing wood
residues for other revenuecreating applications.
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$23,450 p.a.
to support wood processing
operations
The Central North Island
has three established wood
processing centres for pulp
and paper, sawmilling,
remanufacturing, wood pellets
and biomass plants.
Carter Holt Harvey, one of Australasia’s leading forest products companies, is a significant
employer in the Bay of Plenty. It manufactures sawn-lumber products from a large sawmill in
Kawerau, and New Zealand’s largest plywood manufacturer from its mill in Tokoroa, as well as
a number of other manufacturing sites throughout New Zealand and Australia.
Red Stag Timber is an independent,
privately owned timber company
based in Rotorua. It manufactures
structural lumber for the
New Zealand and Australian
markets. Red Stag Timber consists
of two sawmill lines, with associated
timber processing operations
for kiln drying, planning, treating
and remanufacturing. Currently
producing over 450,000m2 per
annum, the company has annual
turnover of more than $180 million
and employs approximately 320 staff.
Verda International Limited is
an integrated outdoor wood
products company based in
Rotorua. The company specialises
in high quality decking, fencing
and landscape timbers and
services both domestic and
export markets including Europe,
Japan, the United States, China,
the Pacific Islands and Australia.
Verda International is majority
New Zealand owned and operated.
Sequal Lumber is a leading
New Zealand lumber mill and
exporter of radiata pine timber
based in Kawerau, Bay of Plenty.
The company was established
in 2006 and began processing
logs in 2008. Sequal Lumber’s
products are used in furniture,
pallets, packaging, cable drums
and construction. The company
produces and exports radiata pine
lumber solutions throughout the
Australasian, Asian, and Middle
Eastern markets.
27
Innovative Manufacturing Sector
The wider Bay of Plenty is capitalising on its primary-industry servicing and manufacturing expertise to
become a leader in innovation and high-value manufacturing. The region’s manufacturing sector is well
supported by its infrastructure, as well as research and development and tertiary training provision.
The region is building on its expertise in engineering and technology for the wood processing, agricultural and
geothermal industries to develop an innovative high-value manufacturing capacity in areas including titanium
powders. This expertise also supports areas such as pharmaceuticals and agri-chemicals.
$42,610 p.a.
World-class
Cutting-edge
median earnings for
manufacturing
testing and prototyping facility
for titanium powders and
products
high-tech metal manufacturing
in titanium
12,000
Renewable energy
Innovative
employees in manufacturing
in abundance for industrial use
new firms that are recycling wood
waste into biofuels
Six
Development
168
innovation centres in the region
of Harbour Marine Precinct
to grow marine engineering
services
marine engineering businesses
The region has two wellestablished trade training
providers and centres of
excellence in wood processing,
horticulture and geothermal
energy.
The Coastal Marine Field Station
was established in Tauranga
in December 2011. It positions
the region as a major research
centre for pharmaceutical and
agri-chemical innovation.
The region is leveraging its
natural advantages in forestry,
marine farming and agriculture
to develop new innovative
secondary industries.
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Scion is a Crown Research Institute based in Rotorua, with a smaller team in Christchurch.
Scion specialises in innovative research, science and technology development for the
forestry, wood product and biomaterial sectors.
The Port of Tauranga in the Bay of Plenty forms part of the ‘Golden Triangle’ connecting
Auckland and Hamilton. This is a key enabler in freight, manufacturing and research.
The Bay of Plenty Regional Council
has allocated $2.5 million from its
Regional Infrastructure Fund to
Scion for the development of an
innovation centre at its Rotorua
campus. The centre aims to foster
collaboration and innovation
between forestry and wood
processing companies and with
Scion. The centre is expected to be
completed by December 2015.
The Titanium Industry Development
Association (TiDA) was formed
to help unlock the potential of
the industry and has now reached
an exciting stage in helping
New Zealand companies develop
new products for the international
marketplace. A research
collaboration involving a mix of
five government, university and
private organisations is delivering
world-class research in the field of
titanium powder metallurgy. FSP designs, manufactures and
distributes a large range of rotationally
manufactured polyethylene products
consisting of school lockers, fire hose
reels / cabinets, mining supplies,
safety signs and equipment. The
Tauranga manufacturing plant is the
company’s major cabinet locker plant
for global markets and accounts
for around 60-70 percent of FSP’s
business with the major market being
the supply of heavy duty lockers to
the education sector.
Powering Food Production
Agriculture is a strong and growing sector for the wider Bay of Plenty, contributing seven percent of regional
GDP. The region is New Zealand’s largest producer of avocados and kiwifruit and supports New Zealand’s
dairy production.
New Zealand’s largest deep-water marine farm, Eastern Sea Farm Ltd, is being established in the Eastern Bay
of Plenty and there are further aquaculture opportunities for local consumption and export markets.
The region also has the potential for further investment to develop Manuka honey plantations and a dairy goat
industry, supported by ready access to geothermal energy.
78%
45%
median earnings for
primary industries
of New Zealand’s planted
kiwifruit area
growth in agricultural GDP over
five years
5%
Geothermal energy
588,000
of New Zealand’s
agricultural workforce
to power agricultural
infrastructure
tonnes per annum from Port of
Tauranga
R&D capability
Freight capacity
40
at the University of Waikato
Marine Centre and Newnham Park
Horticulture Innovation Centre
for growth in road, rail and
sea transportation
food producers and processing
firms
Horticulture and marine expertise
is available from within the
‘Golden Triangle’ of Auckland,
Hamilton and Tauranga.
3,900 hectares of consented
water space is being developed
for high yield, high quality
marine aquaculture in the
Eastern Bay of Plenty.
Newnham Park Horticulture
Innovation Centre supports a
cluster of innovative horticulture
and food processing companies.
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Zespri’s headquarters are located in Mount Maunganui in the Bay of Plenty. Zespri’s kiwifruit is
grown throughout New Zealand and the world.
Port of Tauranga is New Zealand’s largest international port by volume, transporting bulk cargo
from across the Central North Island for shipping to global markets. It is the largest container
terminal in the country.
Zespri International Limited is
the world’s largest marketer of
kiwifruit, selling into more than
50 countries and managing 30
percent of the globally traded
volume. Zespri Group Limited
is owned by more than 2,400
New Zealand kiwifruit growers.
Zespri, together with Plant & Food
Research, has created the world’s
largest natural kiwifruit breeding
programme.
Comvita Limited is a publicly
listed company specialising in
natural health products. Comvita
is also the world’s largest
manufacturer and marketer of
Manuka (Leptospermum) honey.
The company sells to more than
18 countries and has offices in
New Zealand, Australia, Hong
Kong, Japan, Taiwan, Korea, the
United Kingdom and the United
States. Comvita’s head office
is located in Paengaroa in the
Bay of Plenty.
PlusGroup Horticulture Limited
offers a unique range of specialised
integrated horticultural solutions
both domestically and internationally.
The company provides pollination
services and orchard management
systems and is the biggest provider of
pollen for kiwifruit. RoboticsPlus funds
and manages development research
into Horticulture Robotics from field
applications to post-harvest solutions.
PlusGroup Research offers specialised,
independent research facilities.
29
30
Who has invested in Bay of Plenty?
C3 (Australia and New Zealand)
C3 is a leading provider of product-handling solutions on the wharf and beyond.
The company has more than 800 staff working in 15 ports around New Zealand
and Australia. C3 works in partnership with many major and smaller exporters,
importers and shipping lines.
Each year, C3 handles more than 14.5 million tonnes of cargo. This includes around
27 million logs, 3.5 million tonnes of forest products and 300,000 tonnes of steel.
C3’s roots stretch back to the 1950s, when a portside and logistics business was
founded in Mount Maunganui.
Dentsply NZ (United States)
DENTSPLY (NZ) Ltd is a New Zealand dental manufacturing company based in
Katikati, Bay of Plenty. Founded by Dr Simon McDonald in 2003 as Triodent Ltd, it
is a New Zealand-based manufacturer of professional dental consumables used in
restorative dentistry and is well known for its innovative sectional matrix system.
In 2013, DENTSPLY International Inc. entered into an agreement to acquire certain
assets of Triodent. DENTSPLY International Inc. is a leading manufacturer and
distributor of dental and other consumable medical device products. For over
110 years, DENTSPLY’s commitment to innovation and professional collaboration
has enhanced its portfolio of branded consumables and small equipment.
Headquartered in the United States, the company has global operations with sales
in more than 120 countries.
Hancock Timber Resource Group (United States)
Hancock Forest Management is the property management subsidiary of the
Hancock Timber Resource Group (HTRG), which is the world’s largest timberland
investment manager for institutional investors. The company is responsible for the
day-to-day, on-the-ground timberland management services for HTRG’s investors
on approximately 1.2 million hectares across New Zealand and the United States.
Hancock Forest Management’s New Zealand headquarters is in Tauranga.
Norske Skog Tasman (Norway)
“Our location within the Bay Of Plenty region of New Zealand ensures our close
proximity to strategically important road and rail infrastructure, linking the mill
to the Port of Tauranga and the rest of the world.”
– Aaron Buist, Operations Manager at Norske Skog Tasman Limited Norske Skog Tasman Limited is a paper mill situated in Kawerau in New Zealand’s
Central North Island forestry region. The company uses sustainably managed
sawmill residues and arisings to produce 155,000 tonnes of newsprint annually,
supplying newsprint to New Zealand publishers, as well as exporting into Asia,
India and the South Pacific.
Norske Skog is part of the world’s largest industrial geothermal site. The company
has the only mill in the world to use geothermal steam in the pulp and paper
production process.
How Bay of Plenty Compares
People
Home to the largest
container port (by
volume) in New Zealand
18%
65 Years +
14%
33%
40-64 Years
Land usage by area
33%
216,061 ha
28%
15-39 Years
32%
22%
0-14 Years
20%
0%
Bay of Plenty
20%
40%
New Zealand
$325
$430
Bay of Plenty
New Zealand
*Average price across region as at May 2014, sourced from
Real Estate Institute of New Zealand
45%
Forestry
245,861 ha
15.2%
Horticultural land
14,780 ha
11.6%
Grain & crop land
6,529 ha
1.4%
All other
62,822 ha
4.2%
$290 $170
$165
Tauranga
Taupo
Rotorua
Employment rate
Overall life
satisfaction
Average household
income (2013)
60%
86%
$76,600
65%
87%
$88,400
Bay of Plenty
achieved university
entrance standard
(2012)
2.0%
Education
% of New Zealand
New Zealand
Bay of Plenty
New Zealand
Bay of Plenty
New Zealand
31
Welcoming Investors
The Bay of Connections, coordinated by the Bay of Plenty Regional
Council, is the economic growth strategy for the wider region.
There are four Economic Development Agencies (EDAs) in the region:
Priority One, Grow Rotorua, Enterprise Great Lake Taupo, and Toi-EDA.
Cheryl MacGregor
Portfolio Manager,
Bay of Connections
T +64 21 224 1371
Wboprc.govt.nz
bayofconnections.com
The first point of contact for investors is the Bay of Connections
Portfolio Manager. All EDAs work together on regional projects and the
relevant EDA will work one-on-one with potential investors to ensure a
smooth transition into the Bay of Plenty.
The Bay of Connections sets out the goals and
priorities for sustainable economic and employment
growth in the region, with its core vision being a
prosperous region supported by sustainable sectors.
The Bay of Connections:
The strategy has a goal of an additional 5,000 jobs by
2025, over and above business-as-usual outcomes.
Joint action plans being executed under the strategy
action include aquaculture, energy, forestry, freight
logistics, tertiary education and sport and recreation.
•Builds connections into and within the region for
international businesses
•Is a conduit for investors to discuss their interests
with EDAs in the region and national government
agencies, ensuring the right connections are made
•Brings together industry, central and local
government, science, tertiary and other parties
to work on economic development initiatives.
FSP Australia’s rotational moulding operations were moved from Brisbane to Tauranga in 2013. FSP had been
considering China as a manufacturing location, but the efficiency of the Port of Tauranga, competitive land
and lease costs, labour quality and costs, and the can-do attitude of a ‘micro-city’ exceeded the company’s
expectations. FSP’s focus in Tauranga is directed to growing the business there as opposed to its plants in
Australia, Canada and China.
ISBN 978-0-478-41634-3 1 July 2014
32
REGIONAL INVESTMENT | GISBORNE
Gisborne
Gisborne’s strengths are in forestry and
wood-product manufacturing, sheep,
beef and grain farming, as well as
horticulture.
The region has rich alluvial river flats,
which, combined with mild temperatures,
make it an ideal location for growing
crops.
Gisborne’s growing forestry harvests
and its cereal and maize-seed industries
create strong investment opportunities.
Regional Highlights
Growing
forestry harvest
Strong agricultural
output
Cost-competitive
land and salaries
Increasing exports
A booming forestry industry
Log exports from Gisborne’s Eastland Port have
grown by 1.52 million tonnes over 10 years, mainly
due to increasing forestry harvests. The growth of the
region’s forestry industry creates opportunities for
wood processors to invest in the region.
Growing agricultural output
Gisborne is a major crop farming and agricultural
region. There are attractive opportunities to capitalise
on its growing wine and dairy industries, with
additional investment required to fuel this growth.
Low-cost, high-potential processing
Gisborne’s strong supply of livestock, fruit and cereals,
combined with the availability of cost-competitive
commercial and industrial land, makes it an attractive
location for food and beverage manufacturing.
Gisborne
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34
Cost Competitive
Gisborne’s economy is driven by a fast-growing forestry and agriculture sector. Eastland Port has grown rapidly
in recent years mainly due to increasing forestry harvests. The region is also investing in roading infrastructure
to meet increasing forestry demands.
Gisborne is very affordable with competitive salary, land and commercial property rents.
The region is known for its stunning coastline and marine environment. It is also known for its high proportion
of Māori residents and sites of cultural and spiritual significance.
26.7%
compound annual
growth in export
volumes from
Eastland Port
60%
53%
Third
12%
potential growth in
log exports by 2020
of national
sweet corn production
biggest wine producer
in New Zealand
of New Zealand’s
maize grain
Earnslaw One
forest plantations
Te Urewera National Park
and Lake Waikaremoana
Hikurangi Forest
Farms
State Highway 35
Tauranga – 3 hours
30 minutes by road
Tolaga Bay
State Highway 2
Constellation Brands
(Kim Crawford Wines)
Leaderbrand farms
and packing plant
Juken New Zealand
plantation forests
Cedenco Foods
and Corson food
manufacturing
plants
Gisborne Airport –
1 hour to Auckland
Napier – 2 hours
40 minutes by road
Gisborne
Eastland Port
Eastern Institute
of Technology
A Booming Forestry Industry
The forestry industry is the largest contributor to Gisborne’s economy. Exports from Eastland Port have grown
from 480,000 to 2.07 million tonnes in 10 years mainly due to its increasing forestry harvests. The volume of
logs harvested is likely to increase from about 1.6 million tonnes currently to a sustained harvest of 3.5 million
tonnes by 2020.
Low levels of local processing, alongside increasing harvests, represent a significant opportunity for national
and international wood processors.
5,000 hectares
International
sector workers
of new and replanted forestry
forestry and wood product
manufacturers operating in
the region
850
151,139 hectares
60%
employees in forestry and logging,
forestry support services, and
wood product manufacturing
of radiata pine planted in the
Gisborne District
Potential export growth in
logs by 2020
Vocational training
Investment
14%
offered by Eastern Institute
of Technology
from the National Land Transport
Programme will improve linkages
to the port to support forestry in
the region
of New Zealand’s log exports
Gisborne is one of the largest
forestry employers in the
North Island.
Eastland Port’s facility to
remove bark (debarking) now
handles 200,000 tonnes of
logs and is one of only two
companies in New Zealand that
does debarking.
The region currently has one
sawmill, but its increasing
harvest could supply three to
four wood processing mills.
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Eastland Port recently won a contract to operate a debarking facility in Northport in the
Northland region.
The forestry industry, the largest contributor to the Gisborne economy, relies on both
Eastland Port and the Napier Port in Hawke’s Bay for the export of logs and for the
movement of logs domestically for processing.
Companies in the forestry sector have joined industrywide research cooperatives. Eg Hikurangi Forest
Farms’ involvement with research in conjunction with
Scion, a New Zealand Crown Research Institute (CRI)
that specialises in research, science and technology
development for the forestry, wood product and
wood-derived materials and other biomaterial sectors.
Hikurangi Forest Farms Ltd (HFF) is a
medium-sized forestry company based at
Gisborne. It is a member of TreeOne (NZ) Ltd, which
is wholly owned by Lingui Developments Berhad,
a privately owned Malaysian company. The HFF
estate consists primarily of intensively managed
Pinus radiata plantations. The total estate area of
HFF is approximately 35,000 hectares of which
approximately 27,000 hectares is production forest.
35
Growing Agricultural Output
Gisborne has a strong agricultural economy derived from its highly fertile alluvial soil, long sunshine hours and
moderate rainfall.
The region is also known for sheep, beef and grain farming as well as horticulture. Gisborne is New Zealand’s
third largest grape-growing region and is known for its white varietals – Chardonnay, Gewurztraminer, Viognier
and Pinot Gris – as well as Merlot and Malbec.
$24,980 p.a.
8,653 hectares
350
sector workers
of horticultural land
horticulture firms
1,396
53%
605
employees in sheep, beef cattle
and grain farming
of New Zealand’s sweet corn
production
sheep, beef and grain farms
1,130
90% increase
125
employees in horticulture
in irrigable land over five years
firms providing agriculture and
fishing support services
Gisborne has a depth of skills in
the agricultural sector. The region
also takes advantage of the
vocational training and higher
education at the Eastern Institute
of Technology.
Gisborne has significant
natural advantages in climate
to support investment in its
agricultural sector. There
is also scope for growth
and diversification of
water resources.
The agricultural sector is the
second largest contributor to
regional GDP and has steadily
grown in value over the past
five years. Gisborne is one of
New Zealand’s producers of
maize grain.
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Vineyards in Gisborne form part of a wider regional industry including Hawke’s Bay.
Beef + Lamb New Zealand Ltd is a farmer-owned industry organisation representing
New Zealand’s sheep and beef farmers. It is based in Gisborne, helping farmers make
informed business decisions.
LeaderBrand has farms located
in Gisborne, Auckland and
Canterbury, growing approximately
3,000 hectares of fresh produce
each year for process, domestic
and international customers. The
company employs 220 permanent
staff, with an additional 300
seasonal staff through the summer
harvest period. LeaderBrand is a
fully integrated company involved
in growing, packing, processing,
sales and marketing of its entire
product range.
Significant regional farming
operations include Whangara
Farms, which was formed in
2006 when two neighbouring
farms joined to form a 5,600
hectare property running a flock
of 30,000 sheep and a herd
of 5,000 Angus-cross cattle.
The partnership expects to run
60,000 stock units within the
next five years.
The region has run a series of
projects aimed at increasing farm
productivity. Tairawhiti Land
Development Trust, funded by
central government as part of
its regional initiatives, reported
an extra $34 million of gross
farm income over 10 years and
significant improvements in
human capital.
Low-cost, High-potential Processing
Gisborne’s plentiful supply of livestock and fruit and cereals creates investible opportunities in food and
beverage manufacturing. The region is already home to the largest maize milling company in Australasia and
has the appropriate skills available to grow the sector.
Commercial and industrial space is available at highly competitive rates, making Gisborne an appealing
investment proposition to take advantage of its growing agricultural output and further develop local food and
beverage manufacturing capability.
Availability
26
median earnings for
manufacturers
of industrial land
wineries in the region
1,196
12%
Leading
employees in food and beverage
manufacturing
of New Zealand’s maize
production
maize milling specialist company
in Australasia is based in Gisborne
Access
Reliable
45
to skilled and migrant labour from
the surrounding regions
water supply for processing and
manufacturing activities
food and beverage manufacturers
Gisborne has an attractive
lifestyle proposition to attract
and retain labour.
Gisborne’s growing supply in
agricultural production and
land availability is ripe for
developing the growth of the
secondary processing sector.
The region specialises in the
production of maize and corn
hybrids. With significant local
agricultural supply and few
existing firms, there is potential
for expansion of the sector
with investment.
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Gisborne is well connected to the neighbouring Hawke’s Bay region, a major international
food processing centre, from which it draws on skills and support.
The Eastern Institute of Technology delivers vocational training and higher education with
three campuses in Hawke’s Bay, Gisborne and Auckland.
Founded in 1902, Corson is one of Australasia’s
leading maize milling specialists. Corson produces
and markets maize food ingredients. Corson is
based in Gisborne. In 2003, Defiance Maize Milling
in Queensland, Australia, was purchased, making
Corson the largest maize milling company in
Australasia. In 2010, Corson sold the seed research
and production facilities to focus on the manufacture
of quality maize food ingredients.
Ovation New Zealand Limited is a specialist
New Zealand meat processing company with strengths
in lamb processing. One of Ovation's three facilities
is located in Gisborne, where it enjoys rural and
farming support, allowing the business to process year
round and specialise in the production and export of
premium-branded chilled products. This dedicated
farming support delivers customer confidence
across the global retail and food-service sectors,
enabling Ovation to build long-term customer-supply
programmes based on consistent availability, quality,
specification and product shelf life. Ovation also has
plants in Hawke's Bay and Manawatu.
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Who has invested in Gisborne?
Cedenco Foods New Zealand Ltd (Japan)
“The $7 million cost of Cedenco’s new frozen vegetable plant, built alongside
its existing factory and opened in February 2014, takes the development
investment in the company’s Gisborne operation to $12 million since Imanaka
bought the company in 2010. It is a significant and long-term investment and we
are going to be here for a very long time.”
– Tim Chrisp, Managing Director at Cedenco Foods New Zealand Ltd
Imanaka Ltd, a Japanese trading company established in 1881, invested in Cedenco
Foods after a 15-year association. Imanaka has existing food businesses in Australia
and Asia and is a willing investor in New Zealand agribusiness. Cedenco was
established in Gisborne in 1986. The company takes fresh raw materials from the
Eastland region and manufactures shelf-stable purees, pastes, powders and frozen
vegetables. Cedenco has 80 permanent and 400 seasonal staff.
Constellation Brands (United States)
Constellation Brands is a leading wine, beer and spirits company with a broad
portfolio of premium brands. Constellation is the world leader in premium
wine, the number three beer company in the United States, leading multicategory beverage alcohol company in the US and the number one producer
of New Zealand wine. The company’s brand portfolio includes Kim Crawford, a
winemaker that began in Gisborne in the late 1990s. The company sources grapes
from the region taking advantage of the flat land with fertile soils consisting of rich
alluvial soils over sandy or volcanic subsoils.
Ernslaw One Ltd (Malaysia)
Ernslaw One Limited is a Malaysian-controlled vertically integrated softwood
plantation company committed to creating sustainable softwood forests, and
delivering premium quality wood products desired by Pacific Rim consumers. It is
the fourth largest forest owner in New Zealand with forests located in a number of
regions in both the North and South Islands. In the Gisborne region, the company
owns a sawmill and 34,000 hectares of forest plantation. Ernslaw One also
operates a bleached chemi-thermomechanical pulp (BCTMP) mill and a sawmill in
the Ruapehu region.
In Gisborne, the company is the largest inland freight customer for the local
trucking industry with an annual freight requirement of about 725,000 tonnes.
products made from trees grown in its own expertly managed sustainable forests.
Wood One is the fourth largest company in house-building products in Japan.
In Gisborne, JNL manufactures advanced and innovative wood products from
selectively planted, managed and harvested radiata pine for local and export
markets. JNL manages and certifies plantation forests in the East Coast and
Wairarapa regions and has a wood processing mill in Gisborne.
How Gisborne Compares
People
Gisborne is the first in
New Zealand to see the sun rise
14%
65 Years +
14%
32%
40-64 Years
Land usage by area
33%
354,559 ha
29%
15-39 Years
32%
25%
0-14 Years
20%
0%
Gisborne
20%
40%
New Zealand
$430
Gisborne
New Zealand
38%
Forestry
150,057 ha
9.3%
Horticultural land
8,653 ha
6.8%
Grain & crop land
4,109 ha
0.9%
All other
104,282 ha
7.0%
$165
$183
Gisborne
*Mid-point price based on highest grade of office space and may
include new build rates, sourced from Colliers International
Employment rate
Overall life
satisfaction
Average household
income (2013)
58%
82%
$70,600
65%
87%
$88,400
Gisborne
Of all school leavers
achieved university
entrance standard
(2012)
3.3%
$231
Education
% of New Zealand
New Zealand
Gisborne
New Zealand
Gisborne
New Zealand
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Welcoming Investors
John Rae
Director, Eastland Group
The first point of contact for investors is the Eastland Community Trust
(ECT). The Trust’s role is to assist in the development of a more positive,
prosperous and attractive community in the Gisborne region.
T +64 6 986 4800
M +64 21 2800 800
W ect.org.nz
ECT is working with the Gisborne District Council and the Gisborne
Chamber of Commerce to establish the Tairawhiti Economic
Development Agency to encourage the growth of the region’s economy
and to provide development support to its businesses. Once established
the EDA will:
•
Lead, integrate and coordinate an economic development strategy
for the region
•
Enhance the promotion of the region, and drive business
development and investment attraction.
The region’s current economic strategy is to:
• P
rovide services and infrastructure to help the
economy grow
• F
acilitate local, national and international business
opportunities
• M
aximise benefits from economic initiatives and
opportunities
• S
upport innovative businesses to start up and
relocate to Gisborne
• E
ncourage investment in research and
development
• Support initiatives to attract talent, investment
and visitors without comprising environment and
cultural values or social wellbeing and regulatory
requirements.
ECT uses its regional knowledge and network
of contacts with business, local government and
community to assist investors to explore and establish
new ventures. ECT owns and operates the port and
energy utilities in the region through its commercial
holding company Eastland group Ltd. This capability
and the Trust’s capacity to co-fund economic and
community development–related projects, make the
organisation a strong facilitation partner for investors.
With support from key regional stakeholders, Gisborne is actively seeking export partnerships with
international players, in particular in China and elsewhere in Asia.
The region is also notable for innovative new food production. For instance, the region is developing an organic
brand of milk called ATA Milk. The concept promotes sustainable dairy farming producing liquid whole milk
targeted at high-end consumers.
ISBN 978-0-478-41635-0 3 July 2014
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REGIONAL INVESTMENT | HAWKE'S BAY
Hawke’s Bay
Hawke’s Bay is a premium global
producer, processor and exporter of
primary products – beef, lamb, fruit and
vegetables, forest products and wine.
The region’s high sunshine hours, fertile
soils, low-cost land and competitive
salaries provide strong commercial
advantage for investors.
Investment opportunities exist in Hawke’s
Bay’s world-class food and beverage
industries, which are supported by access
to an efficient international container port.
Regional Highlights
High quality
food production
Expert processing
workforce
International
container port
A productive place to grow
A planned irrigation project could unlock 25,000
hectares of new irrigable land in the region and
open up investible opportunities through increased
productivity in meat, dairy, fruit and vegetable
growing, and processing.
Global food and beverage manufacturing
The region has well-established and expanding food
and wine industries, with leading international food
processing firms based there due to the region’s low
infrastructure costs. A planned increase in irrigable
land will create the opportunity for more investment
in the food and wine industries.
Cost competitive shared services
Hawke’s Bay’s ready supply of skilled labour and low
commercial property rental and construction costs
makes it an attractive place for international firms to
establish or relocate their office-based services.
Hawke’s Bay
Business cost
advantage
41
42
Close and Connected
Hawke’s Bay is a major agricultural and food processing hub. Napier and Hastings, the region’s two cities,
account for 86 percent of its population.
There are five business parks in the region with capacity for development and expansion, which suit both wet
and dry food processing. Manufacturing and processing plants are clustered around Napier and Hastings and
are able to leverage the concentration of agricultural production in the region.
Hawke’s Bay has multiple distribution channels by sea, road and air. The Napier Port offers competitive and
efficient services for international sea freight.
Second
Strong
20,600
Six
Five
largest viticulture
area with 81 vineyards
engineering firms
supporting industry
hectares of
horticultural land
national transport
companies
global food
processing plants
Pan Pac Forest
Products
Auckland –
5 hours by road
Te Urewera National Park and
Lake Waikaremoana
State Highway 5
State Highway 2
Taupo – 1 hour
40 minutes by road
Hawke's Bay Airport –
Eastern Institute of
Technology
ABB facility
Napier Port
Pernod Ricard Winemakers
Napier
Heinz Wattie’s
Hawke’s Bay orchards
and vineyards
ENZA Foods
Hastings
McCain Foods
Whakatu industrial land –
available for redevelopment
Planned dam will
unlock 25,000 hectares
of irrigable land
Wellington – 3 hours
30 minutes by road
Gisborne – 2 hours
30 minutes by road
A Productive Place to Grow
Hawke’s Bay is a major contributor to New Zealand’s horticulture sector and is the second largest viticulture area
in New Zealand. The region also has a strong agricultural base with 15 percent of New Zealand’s beef cattle and 10
percent of its sheep. Land-based industries account for approximately 30 percent of regional GDP. The region’s
key primary industries are viticulture, pastoral farming, pipfruit growing, vegetable growing and forestry.
A planned increase in irrigable land could lead to further significant growth in the value and capacity of
Hawke’s Bay’s primary industries, increasing its attractiveness as an investment opportunity.
20,615 hectares
81
industries
vineyards in the region
40%
64%
540
of New Zealand’s horticultural
seasonal workforce
of New Zealand’s apple
production land
horticultural farms
Strong R&D
Fourth
Strong
in bio-protection, breeding and
food innovation by businesses and
Government institutions
largest area of irrigable land in
New Zealand
scientific support providing
technical knowledge and
strategic advice
Hawke’s Bay offers world-class
expertise in viticulture and
wine science in education and
research at the Eastern Institute
of Technology.
The region has 16 percent of all
horticulture and 14 percent of all
viticulture land planted in
New Zealand. 10,000 hectares
of irrigated land in the region
are currently devoted to
horticulture.
Hawke’s Bay is New Zealand’s
second largest wine-growing
area and the country’s
leading red wine producer.
New Zealand’s pipfruit industry
is also increasingly concentrated
in the region.
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Hawke’s Bay’s winemakers are also present in other New Zealand wine regions such as
Auckland, Marlborough and Central Otago.
Plant and Food Research is a Government Research Institute and its facilities in Hawke’s Bay
form part of a wider network across New Zealand.
“You come to Hawke’s Bay for
the climate, and you come to
Hawke’s Bay for the food… We
would say that it is the home of
high quality food in New Zealand
– that’s why we are here.”
– Jason Ross, Marketing
Manager of Firstlight Foods,
a New Zealand-owned producer
of beef and deer meats.
Mr Apple, New Zealand’s
largest integrated apple
business based in Hawke’s Bay,
grows and exports around 25
percent of New Zealand’s apple
industry volume. Mr Apple is a
New Zealand-owned company
that employs 180 permanent
staff and a seasonal workforce
of up to 1,700 people. One out
of every four apples exported
from NZ is exported by Mr Apple,
with over 135 customers in
45 different countries.
Prevar Limited is a New Zealand
joint venture company owned by
Pipfruit New Zealand, Apple and
Pear Australia Limited, and the
New Zealand Government-owned
research institute Plant and Food
Research. Prevar recently licensed
a new variety of apple, which the
Havelock North Fruit Company has
developed as Rockit, an innovative
new apple variety in the FMCG
category. The fruit is now available
throughout New Zealand and
international markets.
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Global Food and Beverage Manufacturing
Fruit and vegetable processing and winemaking are part of a well-established and growing sector in
Hawke’s Bay. The region has already attracted leading international food processing firms and its food industry
and related food processing is well served by strong support services and multiple transport links.
A planned irrigation project will improve land productivity and will unlock further investment opportunities for
global food processors.
$41,490 p.a.
Availability
Five
median earnings for
manufacturing
of industrial land for wet and dry
food processing
global food processing plants in
the region
5,420
Rapid
Largest
employees in food product
manufacturing
delivery time from the port to
distribution centres
non-dairy food factory in the
Southern Hemisphere
Support
Renewable energy
5%
significant business networks for
the food and beverage industry
in abundance
of New Zealand’s food
manufacturing firms
The region’s cost-competitive
workforce is educated through
the wide range of study
programmes at the Eastern
Institute of Technology.
The region has multiple
distribution channels by sea,
road and air. The Port of Napier
offers competitive and efficient
services for containerised sea
freight.
Hawke’s Bay has a proven track
record of producing high quality
food products and has already
attracted leading multinational
food company representation.
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Whakatu Industrial Area is home to some of Hawke’s Bay’s most significant processing
businesses and is a national hub for logistics. Food processing firms across New Zealand take
advantage of the cold stores and processing facilities at Whakatu.
Hawke’s Bay Regional Council recently announced a partnership with Massey University,
Wellington, Auckland and Palmerston North to encourage relationships between the University
and the regional agri-food sector.
“Hastings is known as the
‘fruit bowl’ of New Zealand,
producing the majority of
New Zealand’s apple crop, as
well as a significant volume
of peaches, nectarines, pears,
plums, apricots and kiwifruit.”
– ENZA, one of the largest
horticultural companies in the
Southern Hemisphere.
Freeze Dried Foods is the largest
freeze drying operation in the
Southern Hemisphere. It is based
in Hawke’s Bay to take advantage
of the fresh vegetables, meats and
fruits that are readily available.
The firm exports to a number of
international markets including
Australia, the European Union, the
United States, Japan, Hong Kong,
and Taiwan.
Ovation, a specialist New Zealand
meat processing company with
strengths in lamb processing,
targeted the Hawke's Bay as the
best place to set up its business in
1984. Today, Ovation's head office,
and its further processing and
added-value operations remain
in the region. Throughout its
history, the company has been an
industry leader in innovation and
best practice.
Cost Competitive Shared Services
Hawke’s Bay is developing its shared services sector. The region delivers a ready supply of skilled labour, low
commercial property rents and construction costs as well as comprehensive ICT infrastructure. This makes
the region an attractive place for international firms to set up or relocate their office-based services such as
contact centres, banking and insurance back offices and IT support services.
The region’s favourable climate and lifestyle are significant factors in attracting talent. Local government
and business stakeholders are focused on growing the shared services industry and have recently realised
successes in this sector with firms locating their support functions in Hawke’s Bay.
Low cost
High potential
median earnings for the region
average commercial rents of
$250/m2 p.a.
untapped market with few
existing contact centres
Ready supply
Ease of transport
Welcoming
of labour with appropriate skillsets
access to main city centres with
limited commuting times
business relocation programme
to grow the sector
Educated workforce
Ultra fast
Growth
46% of 18-year-olds reached
university entrance level
broadband available in urban
centres with multiple providers
in related sectors over three years
eg administrative services
The Eastern Institute of
Technology delivers foundation,
applied professional and
higher education business and
computing programmes from
certificate level through to
master’s degrees.
Hawke’s Bay has low commute
times and good transport
connections between its two
main urban areas, Hastings
and Napier.
Regional and national
stakeholders are focused on
building a contact centre
industry in Hawke’s Bay, which is
attracting new investors.
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The Eastern Institute of Technology is well connected to industry with students completing
internships across study areas and throughout the region.
The Hastings District Council and Napier City Council has formed sister-city relationships
with several overseas cities, including Tomakomai in northern Japan, Lianyungang in Jiangsu
Province, China, and Guilin in Guangxi Province, China.
“The new office will ensure that
there is a seamless continuity of
business-critical services, even if
something has caused disruption
in Auckland or Wellington.”
Kiwibank is one of New Zealand’s
major domestic banks with
balance sheet assets of $15 billion
and is 100 percent New Zealand
owned and operated.
– Paul Brock, Chief Executive
of Kiwibank
Hastings District Council recently
worked with Kiwibank to establish
a new office in Hastings that
will employ more than 100 staff
and supplement core banking
services provided in the Wellington
head office.
EIT (Eastern Institute of
Technology) is the major public
tertiary education provider
servicing the wider Hawke’s BayGisborne region. EIT provides
a range of certificate, diploma,
university degree and postgraduate programmes.
Other features include a modern
trade academy, significant
international student education,
university-level research activities
and tailored training.
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Who has invested in Hawke’s Bay?
ABB (Switzerland)
“Napier has a long legacy of excellence in power electronics stretching back
around 30 years. The new Napier ABB facility secures Napier’s position as a true
global centre of excellence for our specialty designs. Many people are surprised
to hear that we sell electronic products from Napier to protect some of the
world’s largest electronics factories that make the silicon chips and displays
found on the latest smart phones and tablet computers.”
– John Penny, General Manager GPL Power Conditioning at ABB
ABB is a leading power and automation technology company. It devotes more
than $1 billion a year to various research and development activities. It runs seven
corporate research centres, employing 8000 scientists and supports 70 university
collaborations around the world. In 2013, it opened a new 6,500 square metre
research and development centre and factory in the Hawke’s Bay Airport Business
Park in Napier.
BayWa AG, Munich (Germany)
ENZA FOODS New Zealand Limited is a manufacturer of fruit and vegetable
products and ingredients, and has two processing facilities located in Hawke’s Bay.
In 2012, ENZA FOODS processed more than 110,000 tonnes of fruit.
The firm is fully owned by Turners and Growers, one of the largest horticultural
companies in the Southern Hemisphere.
In 2012, BayWa AG, Munich (Germany) became the major shareholder of Turners
& Growers Limited. Turners & Growers has recently purchased Hawke’s Bay-based
Apollo Apples.
Oji Holdings Corporation (Japan)
Japanese-owned Pan Pac Forest Products (Pan Pac) operates across the forestry
supply chain and has its head office located at Whirinaki near Napier. Pan Pac
manages 33,500 hectares of forest and is one of the largest Bleached ChemiThermo Mechanical Pulp (BCTMP) producers in the world as a result of Oji’s $70
million investment into a new BCTMP plant at the Pan Pac mill. The company is also
one of the largest radiata pine appearance-grade lumber producers in New Zealand.
Pan Pac Lumber’s sawmill and processing facilities enable the efficient production
of high quality lumber for both domestic and international markets. Pan Pac’s
investment in new plant to produce Thermally Modified Timber (TMT) products is
yet another innovation supported by Oji to expand the range of Pan Pac’s lumber
products offerings into interior and exterior applications.
Pernod Ricard Winemakers (France)
“Located at 39.4°S, Hawke’s Bay has a maritime climate similar to Bordeaux in
France. A commitment to traditional winemaking techniques combined with ripe
Hawke’s Bay fruit results in wines that express complexity, texture and a sense
of place.”
– Pernod Ricard Winemakers
Pernod Ricard Winemakers is the largest premium wine company in the world,
with vineyards in Australia, New Zealand, Spain, Argentina, China and the United
States. In New Zealand, Pernod Ricard Winemakers is one of the country’s
largest producers. The company’s key Hawke’s Bay-based brand is Church Road,
produced at its Taradale winery near Napier.
How Hawke’s Bay Compares
People
Hawke’s Bay is the fruit bowl
of New Zealand and has
approximately 2,200 hours
of sunshine each year
17%
65 Years +
14%
34%
40-64 Years
Land usage by area
33%
655,643 ha
27%
15-39 Years
32%
22%
0-14 Years
20%
0%
Hawke’s Bay
20%
7.9%
Horticultural land
20,615 ha
16.1%
Grain & crop land
15,399 ha
3.3%
All other
93,734 ha
6.3%
40%
$285
$430
Hawke’s Bay
New Zealand
46%
$250
Hastings
$275
Napier
Employment rate
Overall life
satisfaction
Average household
income (2013)
61%
90%
$74,300
65%
87%
$88,400
Hawke’s Bay
achieved university
entrance standard
(2012)
6.2%
Forestry
127,460 ha
New Zealand
Education
% of New Zealand
New Zealand
*
Hawke’s Bay
New Zealand
Hawke’s Bay
New Zealand
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Welcoming Investors
Business Hawke’s Bay (BHB), the region’s business growth and attraction
agency, is the investor’s first point of contact. It is jointly funded by the
private sector and Hawke’s Bay Regional and Hastings District Councils.
BHB facilitates a collaborative stakeholder forum called the Advisory
Group, which brings together regional representatives from all councils
in the region, Tourism Hawke’s Bay, central government agencies, the
Chamber of Commerce and others. Together with the Advisory Group,
BHB identifies and supports new investment opportunities within the
region’s respective boundaries.
Susan White
Chief Executive,
Business Hawke’s Bay
M +64 22 353 7585
E [email protected]
W businesshawkesbay.co.nz
Business Hawke’s Bay goals
• Provide business development and support
BHB, in conjunction with regional and district councils,
helps the investor by executing a planned, systematic
approach to business relocation
and growth.
•Stimulate and support key industry clusters and
working groups
•Market the region as a great place for business
opportunities.
• Resilient primary sector growth
• Visitor growth and increased visitor expenditure
• Business investment and development
• Skills, capability and workforce optimisation.
BHB coordinates and promotes business support
services across the region. It is championing the
establishment of a business hub to enable businesses
to easily access business support agencies.
It also identifies skills gaps in the region and works
with businesses to improve performance. For example,
BHB has a High Performance Work initiative to
increase productivity.
Hastings District Council recently worked with Kiwibank to establish a new office in Hastings that will employ
more than 100 staff and supplement core banking services provided in the institution’s Wellington head office.
The Hastings District Council played a critical role in delivering the project, with BHB’s endorsement, by
coordinating local human resources, telecommunications and electricity service providers to deliver a
successful investment proposition.
ISBN 9978-0-478-41636-7 3 July 2014
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REGIONAL INVESTMENT | MANAWATU–WHANGANUI
Manawatu–Whanganui
Manawatu-Whanganui’s strength
is in primary production and
agricultural research.
The region is home to FoodHQ,
New Zealand’s international centre for
food research. Manawatu-Whanganui
is a key logistics centre due to its
central location, flat land and excellent
transport infrastructure.
This opens the way for investment
opportunities in logistics, agribusiness,
food and the contact centre industry.
Regional Highlights
Agribusiness
leader
Global food
innovator
Biopharmaceutical
production
Agribusiness
The agriculture sector underpins the economy of
Manawatu-Whanganui. The region is an important
producer for the New Zealand meat and dairy
industries. The growth and productivity is supported
by the strong research base and innovative
agritech manufacturers.
Food innovation
Palmerston North, the region’s largest city, is home
to FoodHQ, a world centre for food innovation and
research. The region provides a suite of production,
manufacturing and biopharmaceutical expertise.
Contact centres
Manawatu-Whanganui has positioned itself as a centre
of excellence for contact centre operations and offers
an attractive location for international firms to establish
or relocate their contact centre operations due to its
affordable living, central location and stable workforce.
Manawatu–Whanganui
Renewable energy
production
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50
A Key Logistics and Freight Hub
The Manawatu-Whanganui region is strategically located at the centre of New Zealand making it an ideal
logistics and freight hub. Palmerston North is the home of Massey University with internationally recognised
research in agrifood, veterinary medicine and engineering.
The region’s success as a logistic hub can be attributed to its central location. State Highways 1, 2 and 3
intersect the region offering seamless connections to Wellington, Hawke’s Bay and Taranaki. Rail offers a
significant freight hub with rail lines to the east and west connecting the North Island trunk line.
Palmerston North’s location creates a hub for rural communities stretching from Taumarunui and Taihape in the
north through to the city of Whanganui in the west, Dannevirke in the east and Levin in the south. Marton and
Feilding are centrally located alongside Ohakea, the New Zealand Defence Force Air Force Base.
2,000
71%
people involved
in the food
value chain
increase in
agricultural GDP
over five years
Taumarunui
176,225 km
heavy vehicle
kilometres travelled
Tongariro National Park
6,000
26
employees in the
logistics sector
international and local
contact centres
Auckland –
6 hours by road
New Plymouth –
3 hours by road
State Highway 1
State Highway 4
Ruahine Forest Park
Taupo –
3 hours by road
State Highway 3
Napier – 2 hours
15 minutes by road
ANZCO Foods
Rangitikei
Whanganui
Proliant plant
Mars Petcare
Marton
Feilding Stockyards
State Highway 2
Ezibuy
ANZCO Foods
Manawatu
FoodHQ – a collaborative
centre of food research
Contact centre cluster
Horowhenua – the ‘food
bowl’ of New Zealand
Levin
Palmerston North Airport
– 1 hour to Auckland,
35 minutes to Wellington
Dannevirke
Toyota
Palmerston North
New Zealand
Pharmaceuticals plant
Massey University
Manawatu Campus
Wellington –
2 hours by road
Masterton – 1 hour
20 minutes by road
Agribusiness
The agricultural sector underpins the economy of Manawatu-Whanganui. The region is an important producer
for the New Zealand meat and dairy industries. The growth and productivity of these industries is supported by
a strong agricultural research base in the region and innovative agritech manufacturing firms.
The region’s reliable rainfall, good sunshine hours and quality soils create a strong base for agricultural
production, making it possible to generate high quality, sustainable protein for overseas customers.
1,131,155 hectares
71%
industries
of grassland and tussock for
grazing
increase in agricultural GDP over
five years
8%
85%
$5 million per week
of New Zealand’s agricultural
workforce
increase in irrigable land over
five years
of stock sold at the Feilding
livestock sale yards, one of
the largest in the Southern
Hemisphere
Local expertise
Diversified economy
18%
in animal health
successful agricultural
production in cropping and
livestock
of the North Island’s vegetable
farms
Manawatu is home to Massey
University’s Veterinary Teaching
Hospital, the only region
in New Zealand to offer a
Veterinary Science degree. This
reinforces the region’s strength
in agriculture.
The region’s natural location
enables effective connections
to other regions for further
processing or export by sea.
Palmerston North Airport
operates 24 hours.
Manawatu-Whanganui
has attracted a number of
international food processors
and biopharmaceutical firms
including Fonterra, ANZCO
Foods, Open Country Dairy
and Proliant.
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Central Districts Field Days in Feilding, Manawatu, is a national agricultural event that attracts
40,000 New Zealand and international attendees in the lower North Island.
Massey University Manawatu is New Zealand’s largest institution for agricultural, horticultural
and veterinary teaching and research. Massey also has campuses in Auckland and Wellington.
Farmland Foods Ltd is a
New Zealand family-owned
specialised meat processer. From its
small beginnings in a butcher shop
50 years ago, it is now located on
the family farm in a modern plant
employing the latest technology
in manufacturing. The firm is a
market-driven convenience food
solutions provider supplying
retail supermarkets throughout
New Zealand from its purpose-built
national distribution centre.
New Zealand Pharmaceuticals is
a world-leading manufacturer of
pharmaceutical intermediates.
Located near Palmerston North,
it is dedicated to the supply of
bile acid and carbohydrate based
products for therapeutic and
diagnostic use. Established in 1971,
NZP exports almost 100 percent
of its products to more than 180
customers in over 50 countries,
with Northeast Asia, Europe and
the Americas its key markets.
ANZCO Foods is one of
New Zealand’s largest beef and lamb
exporters with sales of $1.3 billion
and more than 3,000 employees
worldwide. ANZCO has two
processing plants with international
market accreditations in ManawatuWhanganui; one in Marton for lambs
and sheep, and another processing
plant in Bulls for the highly regarded
and regionally reared Riverlands
Angus grass-fed cattle.
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Food Innovation
Manawatu is a national centre of excellence for food innovation and agribusiness research. The food and
agricultural industry is partnering with research centres to create investable opportunities in production,
processing, manufacturing and biopharmaceutical product development.
The high concentration of world-class research and business collaboration offers a compelling case for more
international companies to their locate agrifood-based operations in the region.
$40,810 p.a.
Industrial land
Global firms
median earnings in manufacturing
four major industrial zones
available for development
eg Proliant, Mars Petcare and
New Zealand Pharmaceuticals
4,100
Connected
employees in food product
manufacturing
by centrally converging national
road and rail networks
Bio-pharmaceutical
centre
2,000
Eight
Commercialisation
people involved in the food
value chain
research partners in FoodHQ, a
global centre for collaborative
food research
of ideas through the Bio
Commerce Centre (BCC)
FoodHQ, based in Palmerston
North, is New Zealand’s
international gateway for
collaborative food research. It
creates innovation across the
food value chain.
Ample land is available for
development in the region,
including a large-scale
greenfield industrial subdivision
known as the North East
Industrial Park.
Manawatu-Whanganui has a long
tradition of firms associated
with food manufacturing and
biopharmaceuticals – part of
GlaxoSmithKline can trace its
origins to Palmerston North.
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for processing animal
by-products
The Riddet Institute is a premier centre for fundamental and strategic scientific research and
training in food science, and a national Centre of Research Excellence (CoRE). The CoRE
is a partnership between AgResearch, Plant & Food Research, The University of Auckland,
the University of Otago and Massey University. Its headquarters are at Massey’s Manawatu
campus in Palmerston North.
FoodHQ is New Zealand’s
international centre for
collaborative food research
based in Palmerston North.
Its partners include the
government research institutes
of AgResearch, AsureQuality,
Institute of Environmental Science
and Research, Plant and Food
Research, Bio Commerce Centre
and the Riddet Institute as well
as Fonterra, Massey University,
Palmerston North City Council
and Manawatu District council.
Speirs Foods Ltd is a wholly
owned subsidiary of Speirs Group
and has its operation based in
Marton close to Whanganui.
The primary business of Speirs
Foods Ltd is the supply of salad
items into the retail sector in
New Zealand. Speirs Foods
Ltd produces and delivers into
supermarkets nationwide six
days per week. Its processing,
sales/marketing and distribution
functions are all based in Marton.
Prepared Foods is a New Zealand
iwi-owned specialised food
manufacturer that has been
operating in Manawatu for over
40 years. The company operates as
an export-licensed food processor
(including FIANZ Halal) whose core
business is processed abalone with
a further business specialising in
shelf-stable meals in pouches to
military organisations. Local support
is leveraged from Massey University
and Plant and Food Research. REGIONAL INVESTMENT | MANAWATU–WHANGANUI
Contact Centres
The region has positioned itself as a compelling location for contact centres. It has successfully attracted
26 international and local operations who are capitalising on the region’s cost competitiveness, stable work
force, low-risk and flexible business models.
Digital infrastructure
median earnings for the region
with ultra-fast broadband rolling
out across the region
1000+
Two airports
Online trading centre
contact centre staff in the region
with international connections
via Auckland and Wellington
Australasian online retail activity
concentrated in the region
Expected growth
15+ years
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for 150-seat contact centres
since the Manawatu Contact
Centre Cluster began operating
international and local contact
centres
Palmerston North has a good
workforce profile for contact
centres, with a large student
population and the presence of
central government agencies.
The region supports the
national emergency centre for
New Zealand. During the 2011
Christchurch earthquake the
cluster managed phone calls for
missing persons, donations and
the Red Cross.
International and national
firms have capitalised on the
region’s advantageous location
to develop a mature contact
centres sector.
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Contact centre
cluster
includes large multinationals
such as Toyota
There are a number of central government agencies located in the region including the
New Zealand Defence Force.
Manawatu-Whanganui is a central servicing point for businesses in the region as well as in the
regions of Taranaki, Hawke’s Bay and Wellington.
The Manawatu Contact Centre Cluster is made up of
a group of contact centres from an array of diverse
businesses around the Manawatu area including
telecommunications, local government, retail, and
educational institutions. The purpose of the cluster is
to develop the depth and breadth of the talent pool,
develop the quality of contact centres and grow the
business globally.
“Palmerston North is a crucial gateway to our
provincial centres.
Significant challenges in our market place
have seen New Zealand Post needing to
make changes to remain a sustainable,
and customer-focused business.
Including Palmerston North as one of our three mail
centres means the lower North Island is covered and
ensures that we can continue to successfully deliver
for our customers and communities.”
– Rob Fryer, Regional Operations Leader, Manawatu
Mail Centre, New Zealand Post
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Who has invested in Manawatu–Whanganui?
EziBuy (Australia)
In 2013, the Australian company Woolworths announced it was purchasing EziBuy.
EziBuy was founded in 1978, and is the largest fashion and homeware multichannel store in Australasia mailing more than 23 million catalogues annually and
processing in excess of 1.75 million orders a year. The company’s main retail outlet,
head office and international call centre are in Palmerston North.
MARS Incorporated (United States)
“MARS leverages the quality of local raw materials to enhance its global brands
and expertise, so delivering great quality and value for our customers and
making a better world for pets.”
– Derek Pickering, Plant Manager, MARS Petcare New Zealand
MARS is one of the world’s leading food manufacturers known for its chocolates
and candy, as well as pet care, food, and drink products. Headquartered in
Brussels, Belgium, Mars Petcare is one of the world’s leading pet care providers
and employs more than 34,000 associates across 50 countries. The company’s
35 brands in total, include three billion-dollar brands – PEDIGREE® WHISKAS®
and ROYAL CANIN®. MARS recently committed $13 million to developing its
Whanganui pet food plant.
The Lauridsen Group – Proliant Biologicals (USA)
“Our plan is to grow …we didn’t want to build our plant on land with no room
to grow.”
– Stephen Welch, Chief Executive of Proliant, on the announcement of a new
$24 million factory in Feilding, Manawatu in 2013
US-based Proliant Biologicals, a manufacturer of animal-derived proteins,
produces a variety of grades of bovine serum albumin (BSA) for the diagnostic,
life-science research, biopharmaceutical and veterinary vaccine industries.
Proliant has secured a 12-year supply contract with Silver Fern Farms to ensure a
long-term, high quality raw material.
Proliant Health & Biologicals is the world’s largest collector and processor
of bovine blood and its derivatives. The company is part of the Lauridsen
Group, which has more than $1 billion in sales, seven operating companies and
60 manufacturing locations worldwide.
Toyota (Japan)
“Palmerston North is an ideal location for us. Convenient air and road transport
are critical ingredients, with our national distribution centre able to fulfil late
afternoon orders by the first thing next morning.
Land is readily available in the region too, and operating costs are generally
lower than larger centres. Yet we’re still close to several major tertiary
institutions, providing access to talent.”
– Alistair Davis, Chief Executive, Toyota New Zealand
Toyota opened a parts warehouse in Palmerston North in 1977. In 1991, it was
expanded to a national customer service centre, which now employs around
160 people and occupies more than 8 hectares.
REGIONAL INVESTMENT | MANAWATU – WHANGANUI
How Manawatu–Whanganui Compares
People
The region has more than
1500 PhDs, the highest PhD
per capita in New Zealand
17%
65 Years +
14%
33%
40-64 Years
Land usage by area
33%
1,131,155 ha
30%
15-39 Years
32%
20%
0-14 Years
20%
0%
Manawatu-Whanganui
20%
40%
New Zealand
$218
$430
Manawatu-Whanganui
New Zealand
44%
Forestry
120,754 ha
7.5%
Horticultural land
4,889 ha
3.8%
Grain & crop land
22,541 ha
4.8%
All other
146,306 ha
9.9%
$220
$183
Palmerston North
Employment rate
Overall life
satisfaction
Average household
income (2013)
60%
84%
$71,300
65%
87%
$88,400
Manawatu-Whanganui
achieved university
entrance standard
(2012)
10.6%
Education
% of New Zealand
New Zealand
Manawatu-Whanganui
New Zealand
Manawatu-Whanganui
New Zealand
55
Welcoming Investors
Spearhead Manawatu, working closely with Vision Manawatu, the local
economic development agency, is an innovative programme responsible
for attracting strategically important business and investment. It
provides a professional and hassle-free gateway to the global investment
opportunities across the region.
Craig Nash
Spearhead Director,
Spearhead Manawatu
T +64 6 355 1410
M +64 21 356 499
[email protected]
Spearhead works by developing teams throughout the various
organisations within the region to ensure smooth opportunity
progression. It connects with the eight councils and economic
development agencies that provide a range of services and
programmes to attract, recruit, retain and grow businesses, and has
key development partnerships to support the region’s organisations.
Goals
How we help the investor
•Lead New Zealand’s sustainable agribusiness
land-based production
•Facilitate the establishment of new business within
the region
•Be a world centre for food innovation underpinned
by the region’s strength in primary production and
agricultural research
• Support smooth company and staff relocation
•Maximise the strategic advantages of the region’s
central hub location.
•Enable and support the expansion of existing
local businesses.
Spearhead Manawatu facilitates the delivery of a range
of business development and upskilling programmes
with individual business owners or groups.
Spearhead Manawatu was instrumental in attracting and securing the world’s leading producer of bovine serum
albumin (BSA) to build a greenfield processing plant in Feilding. The $24 million plant will be Proliant’s first
build for BSA production outside the United States.
When completed, the Feilding plant will employ up to 30 staff in high-end science or engineering jobs. It is
expected to contribute more than $90 million to the economy during the next 10 years.
ISBN 978-0-478-41638-1 3 July 2014
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REGIONAL INVESTMENT | TARANAKI
Taranaki
Taranaki is New Zealand’s petroleum
energy hub, as well as an important
food processing centre.
The region’s well-established
petrochemical industry has created an
internationally focused economy.
Taranaki is continuing to expand and
diversify its capabilities in oil and gas,
engineering industries, food processing
and added-value animal by-products.
This is creating attractive investment
opportunities.
Regional Highlights
Oil and gas hub
Food processing
centre
Global engineering
expertise
Capitalising on natural resources
Taranaki's oil and gas sector is geared to take
advantage of further discoveries of oil and gas, both
locally and across New Zealand. There is also potential
for investment in services that support the industry.
Added-value animal products
Taranaki's growing bio-extracts and secondary
processing sectors offer investors an opportunity to
further develop added-value products associated
with the meat and dairy industries.
Growth in engineering
Taranaki is internationally recognised for innovation,
sophistication and cost effectiveness in engineering.
Investment in infrastructure at Port Taranaki and
leveraging readily available engineering expertise
could enable the establishment of offshore oil and
gas refit businesses.
Taranaki
High living
standards
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Rich in Resources
Taranaki is the centre of New Zealand’s petrochemical industry. Established engineering and specialist supply
chain clusters are well equipped to service New Zealand's growing oil and gas industry.
New Plymouth, Taranaki’s capital city, is also the base for New Zealand’s only West Coast deep-water port
providing a convenient shipping link to Australia and Asia. This is supported by a heavy-haul route between
the region’s industrial parks and Port Taranaki, enabling the road transportation of heavy engineering units
for export.
Taranaki has a significant amount of commercially zoned land available for production throughout the region
with easy access to roading, water and power infrastructure.
20+
oil and gas fields
and downstream
industries
200
Four
specialist
engineering-related
support companies
global food
processing plants
New Zealand’s
only
West Coast
deep-water port
ANZCO Foods
Waitara
Pohokura gas field
Methanex plants at
Waitara and Motunui
New Plymouth
WorleyParsons
Auckland – 4 hours
30 minutes by road
New Plymouth Airport –
Western Institute of
Technology
Port Taranaki
61%
of Taranaki's
businesses are based
in New Plymouth
Tegel poultry processing
plant and Fitzroy Engineering
Shell New Zealand
State Highway 3
Wellington – 4 hours
30 minutes by road
Mt Taranaki / Egmont
National Park
Fonterra (Collingwood Street)
cheese manufacturing plant
Maui gas field
Eltham
Kapuni gas field and
Ballance Agri-Nutrients
ANZCO Foods
Eltham
Silver Fern Farms
Taranaki Bio Extracts
Fonterra (Whareroa)
dairy processing plant
Palmerston North –
3 hours by road
Capitalising on Natural Resources
Taranaki is home to all of New Zealand’s producing oil and gas fields, and its oil and gas sector is geared to take
advantage of further discoveries both locally and across the country.
Further oil and gas discoveries will create investment opportunities in services that support the industry,
including engineering and transportation, as well as in the development of chemical by-products.
20+
171 million
median earnings for mining
oil and gas fields
barrels of oil
(New Zealand oil reserves)
3,200
2,300 km
91%
oil and gas industry employees
of pipelines transport gas
from Taranaki
of crude oil produced is exported
International
7%
10,000
large proportion of workforce are
global oil and gas experts
of New Zealand’s electricity
generation capacity
commercial consumers of gas
supplied from Taranaki
Taranaki holds advanced
courses at the Western Institute
of Technology Taranaki that
provide training on process
operations (oil and gas) and
hydrocarbon drilling.
Port Taranaki exports the
region’s crude oil production to
international markets and has
capacity for further expansion.
Taranaki has already attracted a
number of significant investors
including Tag Oil (Canada), Shell
New Zealand (Netherlands) and
OMV EP (Austria).
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There are a number of exploratory wells being drilled around New Zealand by firms that
are established in Taranaki, such as Shell New Zealand, which has 100 years' experience of
successfully operating in New Zealand.
Ballance Agri-Nutrients Limited’s ammonia-urea manufacturing plant, the only plant of its
kind in New Zealand, is located in Taranaki. The plant forms part of a nationwide network of
processing facilities producing superphosphate fertilisers and animal feed.
“New Zealand is recognised as
an untapped oil and gas frontier
with some of the best fiscal
terms and lowest royalties in the
industry, and where TAG can enjoy
the benefits of a high impact
international portfolio without
the political and economic
disadvantages associated with
many other parts of the world.”
– TAG Oil, a Canadian-listed oil and
gas company.
OMV New Zealand is one of the
country’s largest hydrocarbon
producers and a major explorer
in the search for new oil and gas
reserves off New Zealand's coast.
The company began operating
in New Zealand in 1999 after
acquiring a share in the Maari oil
field. OMV has since expanded into
other assets including shares in
the Maui and Pohokura gas fields
and the Maui pipeline. OMV New
Zealand is a subsidiary of OMV EP.
Ballance Agri-Nutrients Limited’s
ammonia-urea plant at Kapuni,
in Taranaki, uses natural gas from
the Taranaki fields to produce
150,000 tonnes of ammonia, which
is then converted to 260,000
tonnes of urea a year. In the
2013 financial year, Ballance sold
1.33 million tonnes of fertiliser
product, representing a turnover of
$878 million.
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Added-Value Animal Products
Taranaki is a major food processing centre that is supported by its dairy, meat and poultry industries.
The region has a high concentration of New Zealand's livestock to supply national processing facilities including
Fonterra and Tegel.
The region’s secondary processing sector presents opportunities to develop added-value animal by-products
and pharmaceuticals associated with the meat and dairy industries, including the development of a bio-extracts
industry. Food additives, pharmaceuticals, enzyme and industrial compounds are being manufactured in worldclass facilities, including New Zealand's only rendering plant certified for MUI Halal production.
$47,850 p.a.
median earnings for
manufacturing
Available industrial
land
Four
for production
4,000+
10%
Productive
food product manufacturing
employees
of New Zealand's dairy cows and
over 5% of its pigs
average 169 million kilograms of
milk solids per year
Skilled
Cost-effective
One of the largest
workforce with diverse food
processing plants in the region
port enables the import of feed
and fertiliser
single-site dairy factories in
Australasia
Taranaki has a skilled engineering
base available to service the
sector, which is driven by the
historical strength of the food
processing and petrochemical
industries.
Taranaki’s abundance of
industrial land and livestock
makes it attractive for food
processing. Its temperate
climate and fertile soils mean
livestock is readily available.
The region is a food
production powerhouse
with highly productive
livestock and efficient
processing infrastructure,
creating opportunities in
animal by-products.
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DairyNZ runs the Westpac Taranaki Agricultural Research Station, which is focused on
cutting-edge farm systems' research and small plot trials. DairyNZ is the industry organisation
representing New Zealand’s dairy farmers.
Lowe Corporation’s plant in Taranaki processes 25,000 tonnes per annum of protein and fat
by-product and is one of its two rendering plants in New Zealand. Low Corporation exports
90 percent of its products.
Tegel has a strong history in
the Taranaki region. Originally
a small Bell Block poultry
processing facility in 1966,
Tegel is now one of Taranaki’s
largest employers, with a staff
of over 700 people. Tegel has
expanded beyond the domestic
market to become an exporter,
supplying product to Australia,
UAE, Hong Kong, Japan and
across the Pacific.
Fonterra is a world leader
in the global dairy industry,
collecting 20 billion litres of milk
a year. In February 2014, Fonterra
announced a $32 million expansion
of slice-on-slice cheese capacity
at its Collingwood Street site in
Eltham, Taranaki.
Taranaki Bio Extracts (TBE)
manufactures and supplies natural
ingredients and products made
from New Zealand beef and
beef bone for the domestic and
international food manufacturing
and food service industries. TBE
is a 50/50 joint venture company
between Taranaki By Products
Ltd (part of the SBT Group) and
ANZCO Foods Ltd.
Growth in Engineering
With 150 years of local engineering history supporting the global oil and gas industry, Taranaki is internationally
recognised for innovation, sophistication and cost-effectiveness in engineering.
Taranaki engineers have tackled some of the world’s most logistically and technically challenging projects,
including accommodation modules for the international oil and gas offshore industry, pressure vessels and
complex piping systems. Manufacturing plants for the petrochemical sector, including the world's first gas-tosynthetic-gasoline plant, have also been developed.
$65/m2
200
median earnings for
manufacturing
average cost of industrial land
(Bell Block)
specialist engineering-related
companies
2,600
Heavy-haul route
4.2%
employees in metal products,
machinery and equipment
manufacturing sectors
for road transportation from
industrial park to Port Taranaki
of national engineering GDP
Diverse workforce
Connected
Scaleable
derived from the international
petrochemicals industry and
national food processing
to international markets through
Port Taranaki
employment concentrated in
large firms
Taranaki has an apprenticeship,
training and mentoring
initiative, which supports the
sector, including through the
Engineering Taranaki Consortium
apprentice scheme.
Taranaki’s transport services are
capable of moving loads of over
600 tonnes from the industrial
heart of New Plymouth to Port
Taranaki to deliver payloads
to national and international
markets.
International firms located
in Taranaki include Fitzroy
Engineering (Dialog Group of
Malaysia) and WorleyParsons
(Australia).
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The Modern Apprenticeship programme and Direct Funding Scheme, delivered in Taranaki by
Engineering Taranaki Consortium, is part of the New Zealand Apprenticeship scheme.
Taranaki engineering firms have delivered heavy engineering projects throughout
New Zealand.
Fitzroy Engineering is one of New Zealand’s largest
heavy fabrication and multi-disciplined engineering
companies and has forged a reputation for the
ability to successfully deliver complex engineering
scopes. The company is a division of Dialog Group
Berhad, Malaysia.
One of Fitzroy's recent projects involved the
management, design, construction and shipping
of an oil recycling facility for Northern Oil Refineries
in Australia.
For over 28 years, Amtec Engineering and its
associate company Drilling Fluid Equipment (DFE)
have been manufacturing and supplying drilling
fluid processing equipment, pressure vessels and
other equipment to companies all around the world. Amtec has controlled on-site projects and supplied
experienced personnel to maintenance shuts and
plant upgrades all over New Zealand. Notable clients
include Methanex New Zealand, Ballance AgriNutrients, Fonterra, Shell Todd Oil Services and most
of the major companies involved in the oil and gas
sector in New Zealand and around the world.
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Who has invested in Taranaki?
ANZCO Foods (Japan / New Zealand)
“ANZCO Food’s Eltham site is able to take advantage of the rich and productive
farming land of the Taranaki and Manawatu regions that allow Riverlands Angus
to graze and be grass-reared in a free-range manner. For the consumer this
means grass-fed beef that is lean, low in cholesterol and trans fats while being
naturally rich in nutrients, including proteins, iron, zinc, and B vitamin.”
– ANZCO Foods
ANZCO Foods is one of New Zealand's largest exporters with sales of
$1.3 billion and more than 3,000 employees worldwide. ANZCO Foods owns a
processing plant and manufacturing facility in Taranaki, and also owns 50 percent
of Taranaki Bio Extracts. ANZCO is jointly owned by Itoham Foods, Nippon Suisan
Kaisha and the directors and management of ANZCO Foods.
Methanex (Canada)
“Methanex has a long history in Taranaki and well-established relationships
with the community, businesses and other stakeholders. Taranaki is a great
place to do business – we receive excellent support from a skilled pool of local
contractors – and we are excited to be part of the economic growth making the
region such a vibrant place to live.”
– Brian Ropitini, Director of Manufacturing for Methanex New Zealand Ltd
Methanex New Zealand Limited is the country’s only methanol manufacturer. It
operates three production facilities, two at its Motunui site and one at Waitara
Valley, with the capacity to produce up to 2.4 million tonnes of methanol annually,
depending on gas composition. About 95 percent of the product is exported to
the Asia Pacific region, making the company a leading exporter for Port Taranaki
and New Zealand.
Shell New Zealand (Netherlands)
“New Zealand is a great place to do business and we enjoy a stable government,
which is important to long-term investors like ourselves. For more than 100
years Shell New Zealand has been contributing to the economic prosperity of
the country while delivering attractive returns for shareholders in a safe and
environmentally responsible manner.” – Rob Jager, Chairman of Shell Companies in New Zealand
Shell is one of the original pioneers of the New Zealand oil and gas industry and
has 100 years' experience of successfully operating in the country. Today Shell
is the majority owner and operator of New Zealand’s major natural onshore and
offshore gas fields in Taranaki (Kapuni, Māui and Pohokura), meeting around
70 percent of New Zealand’s domestic natural gas requirements.
WorleyParsons (Australia)
“This acquisition demonstrates the faith that WorleyParsons continues to have in
this high-performing New Zealand business and in the potential growth in the
New Zealand industrial sector.”
– Pat Hills, Chief Executive of Transfield Worley, commenting on the acquisition
by WorleyParsons of the full ownership of Transfield Worley
WorleyParsons is a leading provider of professional services to the energy,
resource and complex process industries across the globe. WorleyParsons
moved to full ownership of a joint venture with Transfield Services (Australia) in
New Zealand in October 2013. The company's head office is in New Plymouth.
How Taranaki Compares
People
The region provides the
highest GDP per capita
in New Zealand
16%
65 Years +
14%
34%
40-64 Years
Land usage by area
33%
336,227 ha
29%
15-39 Years
32%
21%
0-14 Years
20%
0%
Taranaki
20%
40%
New Zealand
$430
Taranaki
New Zealand
Employment rate
46%
achieved university
entrance standard
(2012)
3.2%
Forestry
23,768 ha
1.5%
Horticultural land
474 ha
0.4%
Grain & crop land
2,541 ha
0.5%
All other
78,332 ha
5.3%
$270
Education
% of New Zealand
$183
New Plymouth
Overall life
satisfaction
Average household
income (2013)
Taranaki
Taranaki
84%
$82,100
65%
87%
$88,400
67%
New Zealand
New Zealand
Taranaki
New Zealand
63
Welcoming Investors
Venture Taranaki is an agency founded and principally funded by the
New Plymouth District Council.
The Trust is also supported by the South Taranaki District Council,
Stratford District Council, Taranaki Electricity Trust, TSB Community
Trust, New Zealand Trade and Enterprise, Callaghan Innovation, Business
Mentors New Zealand and many other private sector organisations.
Stuart Trundle
Chief Executive, Venture
Taranaki
T +64 6 759 5153
W taranaki.info
Venture Taranaki goals
Work with individuals, businesses, clusters and
industries to grow the Taranaki economy by
working through the Venture Taranaki Economic
Development team.
•Offers a free commercially neutral point of
contact for investors to discuss ideas and obtain
information and referrals
•Build on the region’s strengths and frontier
opportunities aligned with rich natural resources in
primary production and oil and gas production
•Capitalise on expertise and innovation in
engineering and manufacturing, regional natural
advantages such as its westward facing locality
close to Australia, existing infrastructure and
desirability for employment and tourism.
• Provides free business start-up clinics, networking
events, information and assistance with R&D
funding
• Provides entry to training/capability building
grants, exporter and industry cluster groups such
as oil and gas and engineering
• Enables access to business mentors, feasibility
studies and regional economic market intelligence.
Taranaki has an extensive record of successfully attracting international investment, from global oil and gas
companies to niche businesses. Venture Taranaki is used by investors as a main point of initial contact to
discuss assessment criteria, regional intelligence requirements, supply chain linkages, infrastructure and
referrals to assist decision making.
ISBN 978-0-478-41637-4 3 July 2014
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REGIONAL INVESTMENT | WELLINGTON
Wellington
The Wellington region is the centre of
New Zealand’s knowledge-based and
creative industries and is home to the
country’s capital city.
Recently voted ‘the coolest little
capital in the world’ by Lonely Planet,
Wellington has the highest proportion
of people employed in knowledge
intensive services.
The region is largely urban with a
rural hinterland supporting forestry,
agriculture and winemaking.
Regional Highlights
High-tech hub
Creative industries
Highly educated
workforce
Compact
capital city
Cutting-edge post-production technology
Wellington is an internationally recognised centre
for post-production and visual effects technology.
Post-production companies from the United States
and United Kingdom take advantage of the time
difference, which sees work completed overnight in
Wellington. There are opportunities to invest in this
rapidly growing sector.
Fast-growing, creative digitech industry
The region has the highest concentration of webbased and digital technology companies per capita
in New Zealand. Investors can take advantage of
globally competitive rental and operational costs, urban
compactness, and robust data and telecommunications
connections, which create an ideal environment for web
and mobile software development.
High quality business process operations
Wellington is a world-class, cost-effective location
to establish higher value scientific and technical
development operations.
Wellington
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Compact and Creative
Wellington is New Zealand’s capital and the majority of New Zealand’s government departments are based in
the city. The wider region is home to the nation’s second largest urban population and is made up of eight local
authorities. Wellington has three universities, world-leading research institutions, three institutes of technology
and multiple research and development centres.
Wellington city is home to New Zealand’s stock exchange and the head offices of numerous New Zealand banks
and corporations. Internationally recognised film and television production businesses, including the Weta Group
of Companies, are clustered in Miramar, Wellington. Wellington also has a thriving digital technology industry.
Wellington’s rural areas are driven by land-based industries including meat, dairy, forestry and winemaking. The
proposed Wairarapa Water Use Project will be a catalyst for further agricultural development.
26%
of New Zealand’s
ICT employees
89%
32%
90%
of New Zealand’s
digital media
revenue
of Wellington
residents are
university educated
of residents live
within five minutes
of public transport
Kapiti
Auckland –
8 hours by road
Three
universities in
the region
State Highway 2
Napier – 3 hours
40 minutes by road
Masterton
State Highway 1
Juken New Zealand
plantation forests
Akatarawa Forest
Whitireia New Zealand
Porirua
Open Polytechnic
Environmental Science
& Research (ESR)
Hutt Valley
New Zealand Stock
Exchange (NZX)
Parliament
Victoria University,
Massey University and
University of Otago
Wellington CBD
Proposed Wairarapa Water Use
Project could increase irrigable land
from 12,000 to 42,000 hectares
National Institute of
Water and Atmospheric
Research (NIWA)
Martinborough
wine-growing region
Callaghan Innovation,
high-tech labs
CentrePort
Wellington International Airport –
direct flights to Australia;
1 hour to Auckland and
30 minutes to Christchurch
Miramar screen and
digital cluster
Contact Centres Australia
Fujitsu New Zealand
Wellington-Picton
Ferry
IBM
Aorangi Forest Park
Cutting-edge Post-production Technology
Wellington offers investible opportunities in its growing screen sector, which is already an internationally
focused, multimillion-dollar industry.
Wellington encourages international screen producers to work in its region and offers diverse, accessible film
locations. International post-production companies take advantage of the time difference to complete work
overnight in Wellington so that it can be viewed the same day in the United States or United Kingdom.
Television studios
845
median earnings in information
and sound stages with
full-service TV pre and
post-production facilities
post-production screen
businesses and contractors
in Wellington
1,280
48 hours
150% growth
employees in the motion picture
and broadcasting sector
response time for location
filming permits
in number of post-production
companies in three years
Industry-led schooling
Two airports
Leading region
via the New Zealand Film and
Television School
including one with international
connections
in production and post-production
by gross revenue
The Pukeko IP Initiative (PIPI)
between Wellington universities
and the private sector assists
emerging talent to commercialise
their ideas. The programme
upskills writers and fosters
collaboration with visual
designers.
Film Wellington has more
than 15 years of experience
supporting the screen industry,
making it the most experienced
office in Film New Zealand’s
network, which has offices
throughout the country.
The Weta Group of Companies
has delivered or significantly
contributed to some of the
most challenging and successful
films in the last 20 years: The
Hobbit trilogy, The Avengers,
Rise of the Planet of the Apes,
Avatar, King Kong and The Lord
of the Rings trilogy.
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Film Wellington provides free advice for the entertainment industry and 24-hour support,
and can assist in securing national and local incentives, grants and permits.
The New Zealand Film and Television School is a subsidiary of Whitireia New Zealand, a
government-owned and funded tertiary institution with campuses throughout the country.
Internationally recognised film and television
production businesses including the Weta Group
of Companies are clustered in the Miramar area
of Wellington.
The Weta Group of Companies is at the heart of this
innovation cluster and continues to grow through
collaboration and partnership. Comprising Weta
Workshop, Weta Digital, Park Road Post Production,
Wingnut Films and Stone Street Studios, these
companies have grown from their modest beginnings
to achieve global success.
The Weta Group of Companies in Miramar, Wellington,
offers a full range of services to suit nearly any
production’s size or requirement. From initial concept
design and pre-production through full fabrication
and engineering of physical effects and set design, to
complete visual effects, post and finishing, the Group
offers everything a filmmaker needs to fulfil their
creative vision. Four purpose-built stages, including
the massive 2,276 square metre ‘Kong’ sound stage at
Stone Street Studios, complete the offering.
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Fast-Growing, Creative Digitech Industry
Wellington has the highest concentration of web-based and digital technology companies per capita in
New Zealand. The region is seeking to grow this industry further. Investors can take advantage of globally
competitive rental and operational costs, urban compactness, and robust data and telecommunications
connections, creating an ideal environment for web and mobile software development.
With the fastest growing high-tech sector in New Zealand, and a culturally creative base, Wellington’s software
development sector is an attractive place to invest in technological innovations such as gaming, digital startups
and software development.
$61,150 p.a.
Lowest
70%
median earnings in information
average commercial rent cost of
New Zealand’s three major cities
of ICT employers plan to recruit
more staff
24%
Connected
42%
of New Zealand’s ICT jobs are
based in Wellington
through fibre optic networks
of workforce is employed in
knowledge-intensive sectors
(NZ average: 30%)
Skilled labour
Knowledgeable
25 high-growth firms
a constant supply of flexible
tertiary labour and newly qualified
graduates
three universities and three
institutes of technology within
Wellington city
per 1,000 – enterprises with
average turnover greater than
20% p.a. over a three-year period
(NZ average: 20)
Enspiral Dev Academy is a nineweek intensive course in software
development. It is the only fulltime tech bootcamp in New
Zealand and licenses its curriculum
from USA-based Dev Bootcamp. Wellington’s robust data
and telecommunications
connections are ideal for
web and mobile software
development and international
collaboration.
According to the TIN100 report
for 2013, Wellington’s growth in
the high-technology sector was
three times faster than any other
New Zealand region.
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Chorus, New Zealand’s largest telecommunications infrastructure company, is headquartered in
Wellington. The company builds and maintains telecommunications lines throughout the country.
Massey University has three campuses in New Zealand located in Auckland, Manawatu and
Wellington. The Wellington campus is home to Fab Lab Wellington, a digital fabrication
laboratory affiliated to the Massachusetts Institute of Technology.
“In 2000 in Wellington, web
and digital space was taking off
– now it’s a world-class digital
community.”
– Mark Pascall, a British migrant,
began his Wellington-based web
and mobile software development
company, 3months, in 2000
after he had been working in
Wellington for several years.
Xero, the global leader in online
accounting software with a market
capitalisation of almost $4 billion,
has its global headquarters in
Wellington. Since it was founded
in 2006, the company has
boosted its global presence with
more than 800 staff across 17
offices in the United States, the
United Kingdom and Australia.
SilverStripe is a globally focused
open-source web technology
company headquartered in
Wellington, with offices in Auckland,
Melbourne and Hobart. Its flagship
open-source product, SilverStripe
CMS, is used locally as the basis
of an all-of-government Common
Web Platform, and as far afield as
the French presidential campaign of
François Hollande.
High Quality Business Process Operations
Wellington is home to several contact centre operations, both in-house and outsourced. These service the
public and private sectors across New Zealand and the world. Growth in the sector has been driven by
Wellington’s educated workforce and supporting infrastructure.
Wellington offers international investors excellent scope to near-shore their higher value scientific and technical
development operations to benefit from competitive costs.
9.3%
median earnings for administrative
and support services
lower average commercial rent
costs than Auckland
3000
Ease of transport
40+
employees in administration and
call centre services
via region-wide rail and bus
services
recruitment agencies to help
ramp up operations
Skilled labour
ICT support
Several
available for work
multiple ICT, ISPs and data centres
call centres located in the region
Wellington has a skilled
and experienced contact
centre workforce available to
quickly grow operations. The
workforce also has experience
in government and financial
services.
Contact centres in lower cost
locations throughout the region
enjoy good transport links to
the city and its infrastructure,
offering further opportunities
for cost savings.
Major New Zealand and
Australian firms with contact
centres in Wellington include
ANZ Bank, Datacom, Contact
Energy and Contact Centres
Australia (CCA).
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Commercial and
institutional hub
headquarters of financial firms
and government agencies
Wellington is home to the majority of national government agencies, and a number of
Australasian financial firms also have headquarters in the city.
Wellington firms are able to connect on a national level. For example, Datacom, which
designs, builds and runs IT systems and processes for businesses, has its original data centre
in Wellington, which forms part of a network of four in New Zealand.
With 3,660 people, Datacom is one of Australasia’s
largest professional IT services companies. Datacom
is 100 percent New Zealand owned with extensive
expertise in the operation of data centres, the
provision of IT services, software engineering and
application management, payroll and business
process outsourcing. Founded in 1965 and operating
across New Zealand, Australia, Malaysia and the
Philippines, Datacom has a successful 49-year trading
history of consistent growth and a track record of
delivering innovative technology-based solutions,
with many clients in relationships spanning decades.
The Australia and New Zealand Banking Group
Limited (ANZ) is one of the five largest companies
in Australia, and New Zealand’s leading bank. ANZ is
one of Wellington’s largest employers and corporate
tenants, employing around 3,000 Wellingtonians. In
2013, ANZ relocated a significant part of its contact
centre operations from Melbourne to Wellington and
invested in a major consolidation and upgrade of its
Wellington premises.
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Who has invested in Wellington?
Contact Centres Australia
“CCA dedicated many months to deciding the best option for opening our first
New Zealand call centre. With the assistance of Grow Wellington, we decided
the Capital was our preferred option.”
– Benjamin Crabbe, Director, Contact Centres New Zealand
Contact Centres Australia (CCA) chose Wellington to open its first New Zealand
contact centre in 2013. Established in 2002, CCA is a wholly Australian-owned
operation based in Sydney.
Fujitsu New Zealand (Japan)
Fujitsu New Zealand is a fully owned subsidiary of Fujitsu Australia Limited, which
is in turn owned by Fujitsu Limited, Japan (incorporated in 1935).
Fujitsu NZ has an 850-plus strong nationwide resource pool enabling skilled and
experienced resources for all customers nationwide.
The company’s head office is in Wellington, with a further eight locations
nationwide and a further 12 locations with mobile resource. With its strong ICT
heritage from chip manufacturing to business consulting, Fujitsu is able to deliver
application development and integration, managed services, complex technical
infrastructure, and business services.
Fujitsu has been operating in New Zealand for 40 years. Fujitsu employs 5,000
staff, and has combined revenues in excess of $1 billion across Oceania.
IBM (United States)
IBM, one of the world’s largest companies, has its New Zealand headquarters in
Wellington. IBM is a global technology and innovation company with operations in
over 170 countries.
products made from trees grown in its own expertly managed sustainable forests.
Wood One is the fourth largest company in house-building products in Japan.
In the Wairarapa region, JNL manufactures advanced and innovative wood
products from selectively planted, managed and harvested radiata pine for local
and export markets. JNL manages and certifies plantation forests in the East Coast
and Wairarapa regions and has modern, efficient and environmentally clean wood
processing mills in Masterton and Gisborne.
How Wellington Compares
People
Most highly educated
workforce in New Zealand
13%
65 Years +
14%
33%
40-64 Years
Land usage by area
33%
323,620 ha
34%
15-39 Years
32%
20%
0-14 Years
20%
0%
Wellington
20%
40%
New Zealand
$430
Wellington
New Zealand
54%
Forestry
62,152 ha
3.8%
Horticultural land
1,993 ha
1.6%
Grain & crop land
8,708 ha
1.9%
All other
82,411 ha
5.6%
$390
Wellington CBD
Employment rate
Overall life
satisfaction
Average household
income (2013)
68%
88%
$99,600
65%
87%
$88,400
Wellington
achieved university
entrance standard
(2012)
3.0%
$413
Education
% of New Zealand
New Zealand
Wellington
New Zealand
Wellington
New Zealand
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Welcoming Investors
Grow Wellington is the regional economic development agency that exists to accelerate economic growth in the Wellington region and make
it more internationally competitive.
Melissa Davies
General Manager, Attraction,
Grow Wellington
T +64 4 382 0077
M +64 21 565 564
W growwellington.co.nz
The EDA’s goals
•Grow business and strengthen key sectors by
connecting companies with expertise and funding
to help them grow, innovate and export
• Makes critical introductions
•Attract and retain business, investment, talent and
students by promoting the region as a great place
to live, do business, work, learn and invest
•Boost innovation and develop the workforce
by connecting industry with researchers and to
commercialise new ideas and meet the business
sector’s future employment needs.
•Provides information on relevant topics including
local demographics, sector specialties, workforce,
skills, property and operating costs
•Helps with compiling information to build business
cases
• Assists with access potential funding
• Accesses talent.
Australian call centre operator Contact Centres Australia (CCA) recently chose Wellington as a location
for its near-shore customer service base. After a thorough analysis of the options, CCA chose to service its
Australian client base from a large facility in the Wellington CBD. Grow Wellington helped the company to
connect to key service providers and landlords, develop a business case, facilitate research trips and access
relevant funding assistance.
ISBN 978-0-478-41639-8 3 July 2014
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REGIONAL INVESTMENT | NELSON, TASMAN AND MARLBOROUGH
Nelson, Tasman and Marlborough
The regions of Nelson, Tasman and
Marlborough (NTM) collectively
form the ‘Top of the South’ and are
known for their apples, wine and
Greenshell mussels.
In addition to wine and food production,
NTM has significant aviation and marine
engineering capabilities, creating
attractive opportunities for investors.
There are further opportunties to
capitalise on NTM's established forestry
and wood-processing sector.
Regional Highlights
World-famous
wine and seafood
Strong marine and
aviation services
Premium pipfruit
producer
World-famous wine and food
NTM is a major producer of apples, wine and seafood
and has a steadily growing natural products and
nutraceuticals industry. These industries present
investment opportunities in secondary processing.
A proposed irrigation scheme would drive further
growth and productivity in horticulture and viticulture.
Marine and aviation engineering
NTM's strong marine and aviation engineering
capabilities and supporting infrastructure make the
region a compelling place to invest. NTM is seeking to
create innovation hubs to continue to develop these
industries.
Adding value to forestry
NTM has a number of large forestry sites and
manufacturing plants, which are creating investment
opportunities for investors in value-added processing.
NTM region
Innovative research
and development
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Air, Sea and Land
NTM's strong engineering and marine capabilities are centred at Port Nelson, the base for New Zealand's deep
sea fishing fleet. These strengths are well supported by excellent research and development institutions.
Nelson is home to one of the world's largest single-site producers of medium-density fibreboard and is also
a significant aviation hub.
NTM also has a vibrant wine industry, with 140 wineries in Marlborough and 40 in Nelson. Goods can be
exported from Port Nelson and Port Marlborough.
Second
73%
Largest
of New Zealand’s
wine production
fishing port
in Australasia
Regional
aviation hub
largest pipfruit
producer in
New Zealand
Highest R&D
employment per
capita in New Zealand
Abel Tasman
National Park
Kahurangi
National Park
Motueka
Cawthron Institute
Aquaculture Park
Fruit-growing area
HNZ Global
Nelson Airport –
1 hour 30 minutes to Auckland,
35 minutes to Wellington and
Port Nelson
Nelson Pine
Industries –
MDF plant
Pelorus Sound
Nelson Port and
engineering cluster
Nelson
Picton-Wellington
Ferry
Nelson Marlborough
Institute of Technology
Port Marlborough
Pernod Ricard
winemakers
State Highway 1
State Highway 6
Proposed irrigation
scheme will add 2,000 ha
of irrigable land
Nelson Forests Ltd
Mt Richmond
Forest Park
Marlborough
wine region
Marlborough Airport
Blenheim
Nelson Lakes
National Park
Christchurch – 3 hours
45 minutes by road
Marlborough
Research Centre
Blenheim
Kaikoura whale watching
World-famous Wine and Food
NTM is world famous for wine and food products. Its long sunshine hours and favourable growing conditions
contribute to it being New Zealand's largest producer of wine and its second largest producer of apples. NTM is
steadily growing its natural products and nutraceuticals industry.
NTM also has the largest fishing port in Australasia at Nelson, and a sizeable and growing aquaculture
sector, particularly in Greenshell mussels. These factors create an attractive proposition for investment in
secondary processing.
Industrial land
80+
industries
available for processing industry
development
food and beverage manufacturers
Support
28%
73%
from Aquaculture New Zealand
and Cawthron Aquaculture Park
to expand commercial operations
of New Zealand's apple orchards
(2,520 ha)
of New Zealand’s wine is
produced in Nelson and
Marlborough
An innovation hub
Largest
37%
is being developed at the campus
of the Nelson Marlborough
Institute of Technology for
students and start-up companies
fishing port in Australasia
of New Zealand’s aquaculture
processing GDP
NTM is focused on innovation
and R&D. It is home to a number
of leading research facilities
in the food, plant, aquaculture
(particularly shellfish) and
wine sectors.
Goods can be exported
from either of the region’s
two local ports or can be
transported to Christchurch's
port via road or rail.
NTM has already attracted a
number of national and global
investors in its food and beverage
sector, including ENZA, Brancott
Estate and the New Zealand King
Salmon Company.
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The Marlborough Research Centre is an industry-led, science-based research organisation
focused on working with the key primary industries of the region. It has strong links with the
Universities of Massey, Lincoln and Auckland.
Cawthron Aquaculture Park is a world-class research and technology centre for the New Zealand
aquaculture sector and its stakeholders.
The development of Marlborough’s
wine industry is one of the
great New Zealand success
stories. Montana (now known
as Brancott Estate) planted
the first Sauvignon Blanc vines
at their Brancott Vineyard in
Marlborough as recently as 1975.
There are now more than 140
wineries in Marlborough and the
region produces the world-famous
Marlborough Sauvignon Blanc.
The New Zealand King Salmon
Co Ltd is the world’s largest
farmer of the rare King salmon
species with an annual production
of 6,000 tonnes. The company
operates five sea farms in the
Marlborough Sounds and was
recently given approval for a
further three farms. It also owns
two processing facilities in Nelson
and three hatcheries in Golden
Bay and Canterbury. Key export
markets include Japan, Australia
and North America.
Supreme Biotech, a Nelsonbased company, has developed
a proprietary indoor algae
production system to commercially
grow difficult-to-grow algae
species continuously. The company
extracts the potent antioxidant
astaxanthin from the algae it
grows and formulates this into
high-value products for the global
nutraceutical market. Supreme
Biotech products are sold under
the AstaSupreme brand through
multiple sales channels.
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Marine and Aviation Engineering
NTM's engineering strengths have derived from its high performing aviation and marine-engineering industries,
as well as from its food and beverage industries. The region also has a large manufacturing base that accounts
for 14 percent of regional GDP.
Nelson offers strong research facilities, which can be leveraged to create investment opportunities in the
marine and aviation engineering sectors.
$39,247 p.a.
Engineering cluster
High-growth firms
median earnings for
manufacturing
leveraging skills and capability
to attract contracts
21 in every 1000 firms
8,600
Third largest
41
employees in manufacturing sector
slipway in New Zealand for
marine engineering
aviation operators in
Nelson-Tasman
One
Collaborative
Aviation hub
of two national locations for
aircraft engineering training at
Nelson Marlborough Institute of
Technology
design and construction
businesses supporting
engineering contracts
delivering maintenance, repair
and overhaul services
Nelson Marlborough Institute
of Technology recently opened
a new Applied Technology
facility that focuses on trade and
engineering training. It is also
a national provider of aircraft
engineering training.
NTM is developing industrial
land to grow and expand its
marine and aviation engineering
sectors.
NTM has developed a
manufacturing base to service a
range of sectors including aviation,
heavy marine, forestry and food
and beverage manufacturing.
The region has five stainless steel
fabrication companies.
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Nelson Marlborough Institute of Technology has established partnerships with
Auckland University of Technology, Lincoln University, Victoria University and the Waikato
Institute of Technology.
Safe Air in Blenheim, a subsidiary of the Air New Zealand Group, provides design engineering,
modification, maintenance, repair and overhaul services to civil and military customers around
the world.
Air Nelson is a wholly owned
subsidiary of Air New Zealand
operating a fleet of 23 Q300
aircraft. The airline – together
with fellow Air New Zealand
subsidiaries Mt Cook Airline
and Eagle Air – provides a
comprehensive regional network
servicing 25 destinations around
New Zealand.
Engineering Nelson Consortium
Limited brings together the full
suite of service offerings in Nelson
to deliver projects to the region.
The companies represented
provide services to marine, fishing,
forestry, coal, cement and most
other industrial areas.
Safe Air is an aviation maintenance,
repair, overhaul (MRO), design
and manufacturing business with
capability for engines, airframes
and components. Safe Air is based
in Blenheim, with a subsidiary Safe
Air Australia, based in Melbourne.
Adding Value to Forestry
NTM offers a range of investment opportunities throughout the supply chain from plantation to wood
processing. A key investment opportunity in Nelson is to further develop added-value wood products. In
Marlborough, more than 50 percent of forestry resource is owned by small (<1000 hectares) private owners
and investment consortiums, with potential for further consolidation and expansion of existing wood
processing companies.
NTM’s forestry sector is seeking to establish itself as a centre of innovation for engineered-wood products and
remanufacturing, including the construction of kitset houses.
$2,317 per hectares
Global presence
industries
competitive land costs in forestry
plantation
(NZ average: $4,400 per hectare)
including Nelson Pine Industries
and Nelson Forests
10%
11%
Mature sector
of New Zealand's forestry
workforce
of New Zealand's total new area
planted (1,268 hectares)
forest plantations ready for
harvest
Skilled
17
8.4% growth
labour with experience in
sawmilling and harvesting
sawn-timber processors
in wood product manufacturing
in Marlborough
NTM has a strongly skilled
horticultural, primary and skilled
manufacturing workforce, which
can be leveraged.
Nelson and Marlborough’s
logs and manufactured
wood products are primarily
exported from Port Nelson, with
additional capacity to export
logs from Port Marlborough.
The region is home to Nelson
Pine Industries’ Golden Edge
plant, which is one of the world’s
largest single-site producers of
medium-density fibreboard.
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NTM leverages professional degree and diploma programmes from forestry in Christchurch
and Rotorua.
NTM is home to a number of international forestry companies with forestry plantations across
New Zealand.
Flight Timbers, based in Marlborough, is a producer
of radiata pine products for markets in New Zealand,
Australia, Asia and Europe. This company also
specialises in supplying high quality buildings and wood
products for the resort and housing markets throughout
the world.
South Pine (Nelson) Ltd is a fully owned subsidiary
of McAlpines Ltd – one of the largest privately
owned sawmilling, timber and building materials
groups in New Zealand. Employing more than
300 staff and with three sawmills processing over
300,000m3 of fibre each year, the company is a
major producer of quality solid timber products for
both the domestic and international markets.
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Who has invested in NTM?
HNZ Global (Canada)
Nelson is the base of Canadian-owned HNZ New Zealand, which has a significant
presence throughout New Zealand, Australia and Southeast Asia. This company
provides services to commercial customers including the offshore oil and gas
industry as well as governments. Canadian Helicopters Group Inc acquired HNZ in
2011 and the group was subsequently renamed HNZ Group Inc.
Nelson Forests (United States)
“NFL (Nelson Forests Ltd) values long-standing relationships with its
export customers and the high level of service we receive from Port
Nelson supports that.”
– NFL Media Release
NFL is an entity created by Global Forest Partners LP (GFP) in 2007 to acquire
and manage high quality radiata pine plantations in the Nelson Marlborough
region. NFL manages 78,000 ha of forest and owns and manages the Kaituna
Sawmill in the Nelson and Marlborough regions.
Nelson Pine Industries (Japan)
“Nelson Pine Industries was established in 1984, as a manufacturing facility
to add value to the Nelson region's renewable resource of Pinus radiata
planation forests.”
– Chris Turner, Nelson Pine Industries
Nelson Pine Industries Ltd is owned by Sumitomo Forestry Co, Ltd (Japan)
and is one of the world's largest single-site producers of medium-density
fibreboard. Nelson Pine Industries Ltd produces MDF (medium density fibreboard)
and LVL (laminated veneer lumber) from radiata pine grown in Nelson's
plantation forests.
Nelson Pine's plant incorporates advanced technology and computerised
production control. This capability, combined with radiata pine fibre used in the
manufacture of MDF, provides a high quality product for markets in Japan, Asia,
India, North America, the Middle East and South Africa.
Pernod Ricard Winemakers (France)
“Marlborough is one of the sunniest parts of New Zealand, with the proximity
of snow-capped peaks and a relatively large landmass causing sharp drops in
temperature at night. This high diurnal temperature variation, which locks in
unusually high levels of acidity in some grape varieties, is a key ingredient in the
success of Pernod Ricard Winemaker’s Marlborough wines.”
– Pernod Ricard Winemakers
Pernod Ricard Winemakers is the largest premium wine company in the world,
with vineyards in Australia, New Zealand, Spain, Argentina, China and the United
States. In New Zealand, Pernod Ricard Winemakers is one of the country’s largest
producers. Its key Marlborough-based brands are Brancott Estate (previously
Montana) and Stoneleigh.
How NTM Compares
People
19%
65 Years +
The region produces 75%
of New Zealand's wine
14%
37%
40-64 Years
Land usage by area
33%
26%
15-39 Years
32%
19%
0-14 Years
20%
0%
NTM region
20%
% of New Zealand
Grassland
233,395 ha
3.0%
Forestry
151,023 ha
9.3%
Horticultural land
31,482 ha
24.6%
All other
135,416 ha
9.1%
40%
New Zealand
$350
$430
NTM region
New Zealand
Education
48%
Nelson
Employment rate
Overall life
satisfaction
Average household
income (2013)
65%
86%
$75,300
65%
87%
$88,400
NTM region
achieved university
entrance standard
(2012)
$210
$183
New Zealand
NTM region
New Zealand
NTM region
New Zealand
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Welcoming Investors
The Nelson Regional Economic Development Agency (EDA) is a councilcontrolled organisation jointly funded by Nelson City Council and
Tasman District Council.
The EDA works closely with the Marlborough District Council’s economic
development manager to coordinate, promote, facilitate, investigate,
develop, implement, support and fund initiatives that boost education,
employment growth and higher average incomes.
Bill Findlater
Chief Executive Officer,
Nelson Regional
Agency
T +64 3 545 6858
W eda.co.nz
Goals
•Facilitate smart and sustainable economic growth
to enhance economic vitality, in support of the
region’s cultural and environmental values
• Supports innovation, research and development
•Facilitate economic development projects that
build national and international competitiveness
• Provide economic advice
•Provide an ongoing assessment of the region’s
performance.
• Encourages industry collaboration
• Supports education and training
• Analyses information and assists with planning
•Develops national and international economic
linkages
• Supports infrastructure development
•Investigate options for accessing capital
investment
• Promotes the region.
The EDA helped the Cawthron Institute source funding for its aquaculture research facility. This complemented
Cawthron's contribution and resulted in joint venture research with three private seafood businesses and
further significant investment for research programmes including shellfish breeding, algal biotechnology and
biosecurity.
ISBN 978-0-478-41640-4 30 June 2014
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REGIONAL INVESTMENT | WEST COAST
West Coast
The West Coast economy is driven
by mining, dairying and tourism. The
region has a diverse mineral profile with
an established coal and gold mining
industry and an expanding onshore oil
and gas exploration programme.
The West Coast is taking advantage of
its abundant rainfall to expand its dairy
industry, while its microclimates nurture
an emerging niche horticultural industry.
The region is an internationally known
eco-tourism destination.
Regional Highlights
Rich in
mineral resources
Successful
dairy industry
Spectacular and
diverse scenery
Capitalising on mineral resources
The West Coast has high quality coal (used in
steelmaking) and rich gold deposits, both of which
are exported. An opportunity exists to recover
and commercialise rare earth minerals. Oil and gas
exploration is carried out onshore.
Developing dairy and horticulture
The success of the region’s dairy industry, based
on high grass growth, could be leveraged to
establish complementary goat farming and milk
processing businesses. Global market-linked
investment is required to achieve this.
Tourism infrastructure
The West Coast is a highly attractive touring and
recreational destination for international travellers
who pursue natural and wilderness experiences.
Investment in eco-tourism and accommodation could
further increase visitor numbers.
West Coast
Highly export
oriented
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Capitalising on Rich Natural Resources
The West Coast is New Zealand’s longest region and is nestled between the Southern Alps and the Tasman Sea.
Eighty-five percent of its land is part of the national conservation estate. Tourists are attracted by the region’s
diverse natural beauty including the world’s closest glaciers to the sea. The West Coast’s swift rivers provide
scope for mini and run-of-the-river hydro development.
The population is mostly spread between Greymouth, the region’s administrative and business centre, Westport
and Hokitika. The West Coast is connected with other regions via two airports, railway, several state highways,
and its harbours. International freight links are provided at Christchurch International Airport and the Port of
Lyttelton in Canterbury.
All
of New Zealand’s
bituminous coal
production is from
the West Coast
40%
of regional GDP
flows from the
mining industry
Vibrant
Two million
One
dairy farming and
processing industry
hectares of scenic
rainforest
of the top ten places
to visit in the world
Westport
Solid Energy
Stockton Opencast mine – the largest
opencast coal mine in New Zealand
Westport Airport
– 55 minutes to Wellington
Bathurst Resources
Denniston Plateau
OceanaGold Macraes
Goldfield
Paparoa
National Park
Nelson – 2 hours
40 minutes by road
Nelson Lakes
National Park
Reefton
Solid Energy
Reddale mine
State Highway 6
Solid Energy
Spring Creek mine
Greymouth
DB Breweries
New Zealand
State Highway 73
Hokitika
Mosman
Oil and Gas
Arthur’s Pass
National Park
Westland Milk Products – processing
plant and research facility
Hokitika Airport –
State Highway 7
Franz Josef and Fox Glaciers;
Westland National Park
Christchurch –
3 hours by road
Capitalising on Mineral Resources
The West Coast has substantial deposits of bituminous coal, gold, platinum, titanium-bearing ilmenite and
other minerals. The mining industry is the main source of employment and economic activity in the region and
there is potential to almost triple its annual production value of $2.4 billion by 2026.
Oil and gas exploration is being carried out in an area of known seepage in the Grey Valley.
Two ports
One million tonnes
median earnings in mining
to ship mineral production
by barge at Greymouth and
Westport
capacity at Reefton Gold
processing plant per year
19%
2.6 million tonnes
150 years
of New Zealand’s mining
workforce
of freight moved by the regional
rail network
of experience and expertise in
mining
High quality training
894,697 tonnes
International
in both underground and surface
extraction as well as other
industries that work in confined
spaces
of industrial minerals produced
by the region
companies operating in the
region such as OceanaGold
West Coast’s Tai Poutini
Polytechnic specialises in mining,
and developed the Reefton
Education Centre for training
in civil plant operation, in
partnership with industry.
The West Coast has rail capacity
for moving bulk and other
materials, including coal and
gold, throughout New Zealand
and for export through East
Coast ports.
Coal and gold production
has continued to expand and
contributes billions of dollars to
the New Zealand economy.
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The New Zealand Motor Industry Training Organisation (MITO), which has a national network
of offices, has a regional training office in Greymouth dedicated to the needs of the West
Coast region.
Mineral extraction in the South Island is driven by industries on the West Coast and in Otago
and the West Coast, with smaller operations in Nelson, Marlborough, Tasman and Southland.
Solid Energy is a state-owned
New Zealand coal mining
company, and the country’s
leading coal producer with
mines on the West Coast, and
in Waikato and Southland. The
company’s annual coal production
is approximately four million
tonnes, evenly split between
metallurgical coals for export and
thermal grades for industrial uses
and electricity generation within
New Zealand.
Doug Hood Mining Ltd is a
New Zealand company specialising
in mining and civil engineering
works requiring significant use
of heavy earthmoving plant. In
February 2014, the company
completed a 28-month miningservices contract with Solid
Energy at Reddale Coal Mine,
Reefton. Doug Hood Mining
operates out of Westport where
it has a regional office and heavy
engineering workshops.
Birchfield Coal Mines Limited is a
privately owned family company
whose directors have widely
established mining interests on
the West Coast. The company’s
sub-bituminous Giles Creek coal
is utilised extensively by the
industrial, service and primary
production sectors in the
South Island.
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Developing Dairy and Horticulture
Agriculture is a critical contributor to the West Coast economy. The region is exploring opportunies to establish
complementary goat farming and milk processing businesses. Expertise and global market-linked investment
will be required to capitalise on this.
The West Coast is also exploring horticultural opportunities that, with investment, could leverage relative
climatic advantage in the production of niche crops during winter months.
$35,180 p.a.
336,227 hectares
17% increase
median earnings in primary
industries
of grassland and tussock for
grazing
in dairy cattle over five years
1,230
316% increase
371
employees in primary industries
in irrigable land over five years
(2,300 hectares)
dairy herds in the region
120 years
Fewest frost days
Niche markets
of independent dairy farming
in the South Island give the
West Coast a mild climate
in feijoas, blueberries, cranberries
and calla lilies
The Primary Industry Training
Organisation supports the
development of the region’s
strong agricultural workforce.
Reliable rainfall of 2,0003,000mm a year, a result of
the region’s geography, yields
ample water supply for farming.
A developing dairy industry
derives advantage from the
export of value-added products
including yoghurt and infant
formula.
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Lack of scale in horticulture is mitigated by linking with supply chains in other regions such as
Nelson whose processors manufacture juices from West Coast fruit.
Westland Milk Products, a farmer–owned cooperative company has suppliers and processing
operations in Canterbury as well as on the West Coast at Hokitika.
Westland Milk Products, which produces milk
powders, butter, milk protein concentrates and
nutraceutical products, has a 77-year history of
operating on the West Coast. The company, which
has experienced record milk supply, produced
128,000 tonnes of processed product for sale in
2013 and exports to 50 countries worldwide.
True Blue Organics produces New Zealand’s only
BioGro-certified organic Tea Tree oil. This 100 percent
pure essential oil is grown, harvested and distilled
in Karamea. True Blue also has a small commercial
feijoa orchard producing well in Karamea’s subtropical climate. The company successfully markets
its oil and skin care products to organic retailers and
manufacturers throughout New Zealand who are
attracted by its reputation and integrity.
Tourism Infrastructure
Tourism accounts for 12 percent of the West Coast’s employment and 9.1 percent of its GDP. The region
stretches 600 kilometres from rainforest in the north to glaciers and majestic landscapes in the south, and
form part of the 1.9 million hectare South West New Zealand World Heritage Site. Lonely Planet ranks the West
Coast as one of the top 10 places in the world to visit.
Tourism has grown to nearly 2 million visitors annually. The conservation estate encompasses the bulk of the
region’s habitats and landscapes and is a major economic contributor. Recent investment in eco-tourism and
accommodation could further increase visitor numbers and profit.
Four highways
Tourism West Coast
– a proxy for tourism infrastructure
and a railway link the West Coast
to other regions
specialises in promoting
the region nationally and
internationally
1,830
Two airports
4.5% of GDP
employees in accommodation and
food services
connect with other regional
airports and Christchurch
International Airport
in the region generated by the
tourism industry
Tourists
Fifth
114% growth
contributed $288 million to the
regional economy
most visited place in
New Zealand by international
tourists
in spending by Chinese visitors
to the region
The West Coast Trades Academy
(WCTA) is a partnership between
the region’s schools and Tai
Poutini Polytechnic supporting
tourism workforce development.
The West Coast Construction
Alliance (WCCA) brings
together engineering,
construction and manufacturing
companies to bid for
infrastructure projects within
and outside the region.
Private tourist operators and the
Department of Conservation help
facilitate recreational activities
such as short walks, hunting,
fishing, jet boating, mountain
biking, caving, exploring glaciers,
climbing, surfing and kayaking.
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$47,600 p.a.
The West Coast’s Tai Poutini Polytechnic offers a range of specialist industry training
programmes for employers. The institution has four campuses in the region and others in
Wanaka, Auckland and Christchurch.
Scenic Hotel Group is
independently owned and
operated hotel group with 16
hotels located in 11 popular
holiday and visitor regions. The
Scenic Hotel Group’s West Coast
properties under the Scenic and
Heartland brands are in Franz
Joseph, Fox Glacier and Haast. The
Group’s Te Waonui Forest Retreat
at Franz Josef Glacier is a five-star
Qualmark-rated luxury eco-hotel.
Ngāi Tahu Tourism owns and
operates iconic New Zealand
experiences. On the West
Coast, Ngāi Tahu’s Franz Josef
Glacier Guides company is
an internationally recognised
operation. The company also has
the Glacier Hot Pools, located in
Franz Josef.
Over 80 percent of the West
Coast is conservation land
administered by the Department
of Conservation (DOC). This
government agency manages all
New Zealand’s conservation land
and waters. DOC is responsible
for more than one-third of
New Zealand’s land including
14 national parks, 34 marine
reserves and six marine mammal
sanctuaries.
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Who has invested in the West Coast?
Bathurst Resources (Australia and New Zealand)
“I think the West Coast has phenomenal opportunity, not only coal. There’s been
a very good study by West Coast Development, West Coast Minerals on the
potential there.”
– CEO Hamish Bohannan
Bathurst has exploration and mining permits covering 10,000 hectares on the
Buller Coalfield, home to some of the world’s most valuable, hard coking coal used
for making steel. Bathurst is listed on both the New Zealand and Australian stock
exchanges. The company’s operations and all of its staff are based in New Zealand.
DB Breweries New Zealand (The Netherlands)
DB Breweries (DB) New Zealand is 100 percent owned by HEINEKEN and is a
member of the HEINEKEN Asia Pacific network. DB was previously owned by
Asia Pacific Breweries (APB) until APB was purchased by HEINEKEN in one of the
largest business acquisitions in the global brewing industry.
In 2012, DB Breweries invested $4 million into the redevelopment of its Monteith’s
Brewing Company in Greymouth. The Brewery is the home of the Monteith’s brand,
New Zealand’s leading craft beer and cider brand.
The Brewery is an innovation hub for the Monteith’s Brewer’s Series range and a
successful West Coast tourism destination offering brewery tours. Monteith’s beer
has been brewed on the West Coast for close to 150 years. The HEINEKEN network
has enabled Monteith’s beers and ciders to be exported into Western Europe.
Mosman Oil and Gas (Australia)
“The board met a number of stakeholders in the West Coast, and greatly
appreciated the support from local contractors, government departments and
local landowners.”
– John W Barr, Chairman of Mosman Oil and Gas
Mosman Oil and Gas is a New Zealand and Australia focused oil exploration and
development company that was formed in 2011 to examine resource opportunities
in overlooked and emerging resource areas. It listed on the AIM market in March
2014. Exploration on the Petroleum Creek Project in New Zealand commenced
in June 2014 where the company announced a discovery in its first well. The
company has plans to drill three to four more exploration wells in the current
programme.
OceanaGold Corporation (Canada, Australia and New Zealand)
OceanaGold is a mid-tier, multinational gold producer with a portfolio of operating,
development and exploration assets in New Zealand and the Philippines. The
Company is publicly traded on the Toronto, Australian and New Zealand stock
exchanges under the ticker: OGC.
For the past 23 years, OceanaGold and its predecessor companies have owned
and operated the Macraes Mine, the largest gold mine in New Zealand located on
the South Island. In this time, over four million ounces of gold have been poured
from the Macraes Goldfield. OceanaGold also owns and operates the Frasers
Underground Mine located at Macraes and the Reefton Mine located in a historic
mining district on the West Coast.
How the West Coast Compares
People
New Zealand’s only source
of high-grade coking coal
(used in steelmaking)
16%
65 Years +
14%
38%
40-64 Years
Land usage by area
33%
130,481 ha
27%
15-39 Years
32%
19%
0-14 Years
20%
0%
West Coast
20%
% of New Zealand
1.2%
Horticultural land
112 ha
0.1%
Grain & crop land
1,814 ha
0.4%
All other
35,847 ha
2.4%
40%
New Zealand
Average office rent* ($/m²)
$220
$430
West Coast
New Zealand
Education
32%
Greymouth
*Mid-point price based on new buildings that are 100 percent
code compliant, sourced from CVL Valuations
Employment rate
Overall life
satisfaction
Average household
income (2013)
64%
88%
$75,400
65%
87%
$88,400
West Coast
achieved university
entrance standard
(2012)
$220
$183
New Zealand
West Coast
New Zealand
West Coast
New Zealand
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Welcoming Investors
Development West Coast (DWC) was set up as a trust in 2001 to
manage, invest and distribute income from an adjustment package
received from central government.
DWC’s objectives are to promote sustainable employment opportunities
and generate sustainable economic benefits for the West Coast, both
now and into the future.
Joseph Thomas
Chief Executive Officer,
Development West Coast
T +64 3 768 0140
M +64 27 243 5244
E [email protected]
W dwc.org.nz
DWC co-invests in businesses through loans and equity. It has supported
a wide range of industries including timber processing, adventure
tourism, horticulture and accommodation.
Focus
•Provide a range of assistance and support to the business sector including business mentoring,
training opportunities, and programmes and business networking events
•Provide the first point of contact, advice and information for investors interested in exploring
opportunities on the West Coast
• Network with national businesses and agencies
•Support individual businesses and identify new industry opportunities where the region has a natural
competitive advantage
•Support the establishment and expansion of viable commercial projects that create net economic
benefit for the West Coast.
Since inception, DWC has been involved in, invested in and supported numerous projects and businesses
throughout the West Coast in an endeavour to promote employment and generate sustainable economic
benefit in the region.
DWC has made significant investments into various industries and sectors, including more than $4.5 million into
the tourism sector (including cycle ways), more than $6 million into dairying, $10 million into forestry/timber
and $3.5 million into cranberries/horticulture.
ISBN 978-0-478-41641-1 3 July 2014
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REGIONAL INVESTMENT | CANTERBURY
Canterbury
Canterbury has innovative
technology and manufacturing
sectors, a strong and diverse rural
economy and an active postearthquake construction sector.
This region is tranforming the city of
Christchurch after the destructive
2010-2011 earthquakes.
Knowledge-intensive industries, urban
regeneration, precision agriculture and
expanding irrigation are creating avenues
for new investment across Canterbury.
Regional Highlights
Highly productive
agriculture
Knowledge-intensive
industries
Urban rebuilding
programme
Fastest national
economic growth
Food processing expansion
Canterbury plays a key role in adding value to primary
food products harvested in the region for domestic
consumption and export, including meat, seafood,
dairy products and wine. Irrigation is creating a
substantial increase in land productivity and new food
processing opportunities for investors.
Knowledge-intensive industry
Often operating in highly niche segments,
Canterbury-based companies provide customised
solutions for clients across New Zealand and around
the world.
Developing infrastructure
Christchurch’s regeneration will lead to a highly
attractive, innovative and environmentally
friendly city. Many hotels were destroyed by the
earthquakes, creating an opportunity for investment
in new capacity.
Canterbury
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A Booming Economy
Canterbury’s economy is experiencing strong growth due to its leading high-value manufacturing and software
development industries, post-earthquake reconstruction and expanding agricultural productivity.
Canterbury is globally connected with international air and sea ports within 30 minutes of Christchurch’s
central business district. Central government research institutes have a regional presence, which support strong
export industries.
After extensive public consultation, a capital works programme is under way to develop dedicated retail,
cultural, innovation and health precincts, as well as a major convention centre, sports stadium and metro
sports facility in Christchurch.
Two
Second largest
universities and two
polytechnics
international airport in
New Zealand
Third most
Two
$40 billion+
populated city in
New Zealand
international seaports
city rebuild value
Kaikoura whale
watching
Christchurch International Airport – direct
flights to Australia, Japan and Singapore
Mt Hutt
Lincoln University
Jade
University of Canterbury
HamiltonJet
Methven ski area
Trimble Navigation
Christchurch CBD
Lyttelton Port
Dynamic Controls
Tait Communications
Allied Telesis Group
Synlait Milk
ANZCO Foods Canterbury
Canterbury Plains
Ashburton
Canterbury
Seed Company
State Highway 1
Aoraki / Mt Cook National Park
Port of Timaru
Timaru
ANZCO Foods
Innovation Centre
Akaroa
Food Processing Expansion
With its temperate climate, high rainfall and fertile land, Canterbury is a prominent food-growing region and
plays a key role in adding value to locally grown primary food products including meat, seafood and dairy
products. Exports and domestic consumption for wine is also increasing.
Canterbury is a hub for agribusiness research and agritech innovations, which are well supported by farmerinnovative farming practices and globally recognised research institutes including Lincoln University, Landcare
Research, Plant and Food Research, and AgResearch.
A well-established and expanding irrigation network across the region is creating a substantial increase in
land productivity.
National hub
7.4
industries
for agribusiness research and
agritech innovations
of Canterbury’s GDP is from
agriculture
11,330
Largest
404
employees in agriculture
area of irrigated land in
New Zealand
food product manufacturing firms
(13.3% of national total)
Practical learning
Connected
Five
offered by Lincoln University
internationally through
Lyttelton and Timaru ports and
Christchurch International Airport
major dairy processing
companies
Key players from around
the region are contributing
to development of a
regional agricultural sector
workforce plan.
Food Innovation South Island
(a Canterbury Development
Corporation subsidiary)
provides specialised business
growth advice, market entry and
pilot production facilities for
innovative food companies.
There are more than 400 food
manufacturing companies
ranging from small artisan
producers supplying the local
market to large processing
factories operating on the
global stage.
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$32,170 p.a.
High-value meat processor ANZCO Foods is headquarted in Christchurch. The company
has seven processing facilities, three food manufacturing sites, one innovation centre, three
local retail outlets and one online retail outlet throughout a number of New Zealand regions
including Canterbury, West Coast, Marlborough, Manawatu and Taranaki.
Headquartered in Christchurch,
ANZCO Foods is one of
New Zealand’s largest exporters
and has sales of $1.3 billion and
over 3,000 staff worldwide. The
company’s Canterbury beef and
lamb plant near Ashburton is one
of a number located nationwide.
With a focus on high-value global
customers, ANZCO’s processing
facilities are designed to optimise
chilled cuts and co-products.
Westland Dairy Products is a
farmer owned cooperative dairy.
The company owns and operates
processing plants in Canterbury
and the West Coast. Westland
produces more than 250 diverse
products, including milk powders
and proteins, consumer and
nutritional products. The total
processing milk capacity at peak is
4,000m3 per day with the option
for farmer shareholders to supply
all year round. Westland’s products
are exported around the world.
Canterbury Seed Company is
one of New Zealand’s largest
seed production and marketing
companies. Recognised for
experience in the fields of pea,
forage and vegetable seed, the
company procures grain and
seed production area within
New Zealand as well as in the
United States and Eastern
Europe. Seeds produced are
marketed domestically and to
over 40 countries.
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Knowledge-intensive Industry
Canterbury, New Zealand’s third largest region for technology, is home to a thriving, innovative, fast-paced and
highly diverse technology industry supporting the increasing productivity of many other business sectors, from
health to farm services.
Canterbury’s locally developed software is known for being flexible, resilient and entrepreneurial. Often
operating in highly niche segments, the region’s technology companies provide customised solutions for clients
across New Zealand and around the world, as well as producing their own products and services.
$44,590 p.a.
$4 billion
117
median earnings for information
(NZ average: $49,970 p.a.)
will be spent repairing
Christchurch’s infrastructure,
resulting in world-case utilities,
digital networks and services
technology startups in 2014
3,290
Connected
855
employees in information media
and telecommunications
by direct flights to Australia,
Japan, Singapore and the Pacific
companies computer system
design and related services
Strong
Diverse markets
Innovation precinct
product development and
export focus
for exporting companies
for high-tech entrepreneurs to run
their businesses under one roof
Christchurch has a range of
organisations supporting the
wider technology sector such
as Christchurch-based Assurity
Consulting, which delivers
software training to individuals
and businesses.
Christchurch’s well-connected
and active technology
community enjoys regular
networking events, a supportive
industry culture and a home
base for entrepreneurs.
Christchurch has attracted
a number of longstanding
international technology
companies to the region such
as HP, Allied Telesis and Trimble
Navigation.
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powerHouse, a Christchurch-based business incubator, uses private and public investment to
develop and commercialise new spin-out ventures primarily from universities and government
research institutes. powerHouse is one of seven New Zealand business incubators in a
government-supported programme, two of which have been internationally recognised as
best in class. The Icehouse, an Auckland-based business incubator, runs training events across
the country including in Canterbury.
HamiltonJet pioneered the
development of the modern
waterjet maritime propulsion
system more than 60 years ago.
HamiltonJet grew out of an
innovative engineering company
founded by Sir William Hamilton in
1939. Today, HamiltonJet employs
over 350 people in waterjet design,
production and service. The
company’s Christchurch plant has
recently been expanded and new
staff hired to increase capacity.
Tait Communications is a global
leader in the design, delivery
and management of wireless
communication solutions for
utilities, public safety, transport
and mining, oil and gas
organisations. Founded in 1969,
Tait has offices in five countries
and a network of distributors
and dealers in 150 nations. The
company employs 800 people
around the world and exports
95 percent of production from its
Christchurch factory.
Since 1978, Jade has worked with
companies around the world to
solve complex business problems
through the design, delivery, and
support of innovative software
and business technology. With
more than 200 employees, Jade’s
clients span financial services,
telecommunications, utilities,
retail, primary production, and
specialist logistics industries.
Jade is based in Christchurch with
offices around New Zealand and
the world.
Developing Infrastructure
The Canterbury earthquakes in 2010 and 2011 have resulted in an almost unprecedented city rebuild – currently
projected at over $40 billion of spending on construction and infrastructure.
Canterbury Earthquake Recovery Authority (CERA) oversees the reconstruction effort and has an ambitious plan
in place and construction under way. International investors will find opportunities in an innovation precinct for
the clustering of high-tech companies, education, R&D institutions and a health precinct, located near the region’s
largest hospital for medical research, medical device development, private clinical services and a medi-hotel.
$45,270 p.a.
Innovative
Rapid growth
median earnings in construction
(NZ average: $42,080 p.a.)
construction and repair
technologies
in construction and employment
ahead
25,850
Sustainable
development
2,534
employees in construction
of houses and commercial and
industrial buildings
Population increase
47%
of 3.4% since 2006
of the city’s road and water
system has been rebuilt
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Central government announced
that it will invest $1 billion to
upgrade and build new schools
in Christchurch, reinforcing its
commitment to student life-long
learning.
Since the earthquakes,
significant construction
and repair innovations have
occurred to speed up the
unprecedented scale of the
Christchurch rebuild.
building construction firms,
ranging from owner-operated
businesses to corporations
International
companies
participating in the rebuild
The construction industry is
growing rapidly. The region
has already witnessed a rise in
employment and this is expected
to continue for years to come.
The Christchurch reconstruction task has required a nationally connected effort demonstrated
by architectural, engineering and construction companies from outside Canterbury
collaborating with local firms to mobilise the scale of resources required. SCIRT (The Stronger
Christchurch Infrastructure Rebuild Team) is a multi-discipline partnership between local and
central government and the private sector (design consultants and construction contractors
City Care, Downer, Fletcher Construction, Fulton Hogan and McConnell Dowell).
Ngāi Tahu Holdings, which has
assets in excess of $1 billion, is
owned by the South Island iwi
Ngāi Tahu and is headquartered
in Christchurch. The company is a
substantial New Zealand investor
owning a group of businesses with
a focus on property investment,
development and management,
farming, forestry, seafood and
tourism. Its portfolio includes
Canterbury’s largest planned
residential land developments and
prime Christchurch properties.
Fletcher Construction is part of
Fletcher Building Ltd. The group
employs some 18,500 people
- 8,500 based in New Zealand.
Fletcher is a significant
infrastructure player in Canterbury
where Fletcher EQR is an agent
to the Earthquake Commission
(EQC). The programme known
as the Canterbury Home Repair
Programme (CHRP) is the largest
residential repair project of its
kind, with an estimated 70,000
homes to be repaired.
Warren and Mahoney is an insightled multidisciplinary architectural
practice. Spread across six
locations and spanning over 60
years, the practice has successfully
designed and delivered diverse,
complex projects for an influential,
long standing client community.
Warren and Mahoney’s historic
roots in Christchurch underpin
its commitment to help rebuild
the city as a vibrant and
attractive environment for people
and business.
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Who has invested in Canterbury?
Allied Telesis Labs (Japan)
“The key benefit for us has been the long-term commitment and talent of the
Christchurch engineering team. That has made it possible to develop multiple
generations of new high-end products.”
– Andrew Riddell, Managing Director of Allied Telesis Labs
Japan-owned Allied Telesis Group’s (ATG) largest research and development
facility is based in Christchurch. ATG is a global leader in IP/Ethernet networking
solutions for enterprises, network service providers and government institutions.
Established in 1987, Allied Telesis now has 43 companies in 37 countries.
Dynamic Controls (New Zealand)
“Being situated in Christchurch means we are able to tap into the University of
Canterbury engineering graduates, plus our wonderful natural environment is a
magnet for global talent.”
– Charlotte Walshe, Chief Executive of Dynamic Controls
Dynamic Controls is a world-leading medical devices company specialising in
electronic controls for power wheelchairs and scooters. The company is a global
organisation with R&D facilities and its headquarters in Christchurch. Dynamic
Controls also manufactures in Suzhou China and has regional offices in the UK,
North America and Taiwan.
The company was purchased by Invacare, a United States-based multinational
specialising in home-based health care, in 1993. Since then, Dynamic Controls
has transformed to become Invacares’ official centre of excellence and R&D for
electronics for the mobility arm of the business.
Synlait Milk (China/Netherlands/Japan)
Synlait Milk has become one of Canterbury’s fastest growing companies, processing
550 million litres of milk a year, employing more than 220 staff and collecting from
approximately 156 Canterbury farms. Synlait has the largest and most sophisticated
purpose-built infant formula facility in the Southern Hemisphere, a competitive
advantage that has contributed to the company’s rapid growth.
Bright Dairy of China became a significant partner and shareholder in 2010, and
in 2013 the company was publicly listed. Additional international shareholders
include Holland’s Royal FrieslandCampina and Japan’s Mitsui.
Trimble Navigation (United States)
Trimble Navigation has been a leading provider of advanced location-based
solutions for 35 years. The company integrates its positioning expertise in
GPS, laser, optical and inertial technologies with application software, wireless
communications, and services to provide complete commercial solutions to a
variety of industries including agriculture, heavy civil construction, roading, building
construction, and transportation and wireless communications infrastructure.
Trimble Navigation is headquartered in California and the company’s products
are used in over 150 countries, with employees in more than 35 countries. The
company is committed to its Christchurch office, employing over 240 staff in the
Christchurch Research and Development Centre.
How Canterbury Compares
People
From 2007-2013 Canterbury’s
GDP increased by 33.5 percent,
significantly higher than the
national movement
16%
65 Years +
14%
34%
40-64 Years
Land usage by area
33%
2,262,115 ha
32%
15-39 Years
32%
19%
0-14 Years
20%
0%
Canterbury
20%
40%
New Zealand
Canterbury
48%
5.7%
Horticultural land
16,339 ha
12.8%
Grain & crop land
240,656 ha
51.4%
All other
187,967 ha
12.7%
Christchurch
New Zealand
Employment rate
Overall life
satisfaction
Average household
income (2013)
68%
86%
$88,300
65%
87%
$88,400
Canterbury
achieved university
entrance standard
(2012)
Forestry
92,215 ha
$400
$183
$430
Education
21.3%
$364
% of New Zealand
New Zealand
Canterbury
New Zealand
Canterbury
New Zealand
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Welcoming Investors
Canterbury Development Corporation (CDC) is the economic
development agency for Christchurch City Council (CCC).
The agency is the first point of contact for investors coming to the
region and plays a key leadership role in coordinating investor interest
with other local economic development groups in Canterbury.
Michaela Blacklock
GM Business and Sector
Development, Canterbury
Development Corporation
M +64 27 209 4276
W cdc.org.nz
The agency works with the CCC and CERA to aid earthquake recovery
for local businesses and industry.
Goal
CDC and its partner agencies in the region:
•Provides an effective first point of contact in the
region
•Drive economic growth for the benefit of the
community
•Plan and forecast economic and workforce
dynamics that accelerate productivity drivers
•Identify sectors and businesses with high growth
potential and support their development
• Lead in the commercialisation of innovation.
•Makes introductions to relevant people in the
business and investor community
•Assists with data collation to support investment
business cases and location investigations
•Provides aftercare support to companies that have
set up in the region.
The CDC was established in 1983 and is one of the longest serving and largest economic development
agencies in New Zealand. Bringing this strong history of successful economic development, together with
three other economic development agencies and key business and agency partners across Canterbury,
the region maintains a strong focus on company innovation and growth. This focus is demonstrated in
Canterbury through:
• Investment in startups through Christchurch-based fund manager and business incubator powerHouse
Ventures Limited, in which CDC is a foundation shareholder
• Support for the Canterbury Regional Innovation System (CRIS), which is the regional ecosystem of research
providers, tertiary institutions, local businesses and entrepreneurs through investment and advice
• Provision of due diligence on the concept of the EPIC (Enterprise Precinct and Innovation Campus)
Innovation Centre, acting as champion and conduit between local and central government to assist its
establishment.
ISBN 978-0-478-41642-8 2 July 2014
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REGIONAL INVESTMENT | OTAGO
Otago
Otago is a leading region for tourism,
superior wool production, winemaking,
design and specialised manufacturing.
Dunedin, the region’s capital, is home to
the University of Otago, a centre of high
quality learning. The University is creating
investible opportunities in advanced
manufacturing and health technologies.
Queenstown in Central Otago is a worldfamous tourist hub offering investment
opportunities in hotel, tourism ventures
and conference facilities.
Regional Highlights
World-renowned
tourism
Centre of
higher learning
High-value
manufacturing
International
container port
Premium research, design and engineering
Otago presents investible opportunities in education
and learning, design technology and niche
manufacturing. The region’s university, polytechnic
and support agencies partner to develop an exportfocused cluster in design technology and niche
manufacturing.
A global tourist hub
Otago is one of New Zealand’s premier adventure
and ecotourism destinations. Further international
investment in hotel and convention infrastructure is
required to support the growing sector.
High quality fruit and wine
Otago is also recognised for its boutique red wines
and stone fruit. A planned irrigation scheme will
unlock further investment opportunities in horticulture
and viticulture as well as associated food and
beverage processing.
Otago
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Educated and Innovative
The region’s engineering and knowledge-based industries located in Dunedin are well supported by the
globally respected University of Otago. The University hosts one of New Zealand’s two research-intensive
medical schools and New Zealand’s only dental school.
Otago has a significant agricultural economy, with strengths in sheep, beef and grain farming and associated
value-added products including merino wool. The region is also known for its boutique wines, stone and
pipfruit.
The region is home to two international airports, a container port, and Queenstown, one of the world’s premier
tourist destinations.
93 patent
applications
40
specialised
engineering firms
The South
Island's
120
wineries
per million people
(NZ average: 74)
primary export port
(Port Otago)
Clyde Dam – New Zealand’s
third largest hydroelectric dam
Accor
Queenstown
Queenstown Airport direct flights to Australia;
2 hours to Auckland and
1 hour to Christchurch
AJ Hackett Bungy,
Shotover Jet and other
tourist attractions
Two
airports – Queenstown
International and
Dunedin
Christchurch – 4 hours
30 minutes by road
Cromwell
Cloudy Bay
Planned irrigation zone will
triple the amount of irrigable
land in Central Otago
Alexandra
Central Otago orchards
and vineyards
Queenstown – Dunedin 3 hours
20 minutes by road
State Highway 8
State Highway 1
University of Otago
and Otago Polytechnic
Port Otago
Fisher & Paykel
Scott Technology
Milton
Invercargill – 2 hours
30 minutes by road
Dunedin Airport – 2 hours to
Auckland and 1 hour to Christchurch
Dunedin CBD
Otago Peninsula –
Yellow-eyed penguin
and Albatross
tourist attraction
Premium Research, Design and Engineering
Dunedin has a strong engineering industry driven by a cluster of firms specialising in design technology and
high-value manufacturing. Companies have access to talented students through a city-wide business internship
programme. The region’s engineering cluster is well supported by the University of Otago and access to
innovative research.
Investible opportunities are created by Dunedin’s premier research and design centres.
Industrial land
7.5%
median earnings for professional,
scientific, and technical services
available for development
of regional GDP is from
manufacturing
7,241
Collaborative cluster
93 patent applications
employees in professional,
scientific, and technical services
engineering and ICT firms
clustered in Dunedin
per million heads
(NZ average: 74 patents)
22.7%
A key exporting port
40
Of people in Dunedin, aged
15 years and over, hold a
Bachelor’s degree or higher
(NZ average: 20%)
for the South Island
engineering firms with over
140 years of experience
The University of Otago’s
School of Medicine has helped
to develop regional expertise to
manufacture highly specialised
medical devices.
Port Otago in Dunedin gives
gives manufacturers access
to export markets and is well
connected to industrial zones by
road and rail.
A number of engineering firms in
Otago sell products and services
internationally. They include
Milmeq, Scott Technology, Farra
Engineering, and DC Ross.
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Otago Polytechnic has several partnerships founded on the sister-city relationship with
Shanghai. These include working with the Shanghai University of Engineering Science,
yielding collaborative activities in the area of design; and the Shanghai University of
International Business and Economics, providing international study opportunities for Otago
Polytechnic students. A further partnership with Shanghai Dianji University is developing to
focus on the area of engineering.
“Dunedin has given us a really
good business ecosystem to
start to grow our business, from
access to fresh students from
the University to the clever niche
manufacturing suppliers.”
– Kylie Robinson, CEO Igtimi Ltd.
Igtimi is an electronics company
focused on live broadcast
events and high-tech sports.
Its technology has been used
at several international sailing
regattas.
Farra Engineering has a 150-year
history of providing engineering
solutions to national and
international customers, and
is one of New Zealand’s oldest
engineering companies. Farra
has capabilities in metal design,
fabrication and commissioning.
DC Ross, headquartered in Dunedin,
supplies parts for major global
manufacturers and has delivered
projects for Fisher & Paykel and
Futuris Automotive. The company
ships around the world from
its workshop in Dunedin and
offers distribution options from
warehouses in Melbourne, Australia,
and other tthird-party logistics
providers around the globe.
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A Global Tourist Hub
Queenstown is home to number of adventure and adrenaline activities, including bungy jumping, white water
rafting and jet boating. The Otago Peninsula is one of the top ten destinations for mountain biking and is one of
the finest examples of eco-tourism in the world.
Otago’s tourism sector has experienced strong growth over the past 10 years, and requires further investment
in hotel and conference centres to continue this growth.
$43,400 p.a
Expansion
Global presence
– a proxy for tourism infrastructure
(NZ median: $42,080 p.a)
by continually developing
new ways to attract tourists
with Accor, Millenium and
Copthorne hotels
17.8%
Two airports
88%
of New Zealand’s international
tourism expenditure
connecting world travellers with
the rest of New Zealand
of all New Zealand cruise ship
passengers visit Dunedin
Educated
Second
28% increase
one of the main centres for tourism
research in the Asia Pacific region
highest guest nights per region
in New Zealand
in the value of accommodation
and food services over five years
Otago has successfully
developed and pioneered a
strong adventure and adrenaline
tourism sector. Queenstown also
has four ski fields within easy
reach that offer tourists a range
of winter sports.
Otago has capacity to
further develop its tourism
infrastructure. The region has
access to suitable construction
skills and labour, and good
national and international
connectivity.
The region is the home of
world-famous brands in
adventure tourism, such as
AJ Hackett Bungy New Zealand
and Shotover Jet, and is
continuing to develop the sector
and open up new opportunities
for growth and investment.
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Queenstown Airport and its investor partner Auckland International Airport cooperate on
trans-Tasman seat growth, targeting higher yielding travellers and exploring new potential routes.
Three out of 23 Millennium and Copthorne Hotels and four out of 29 Accor hotels in New
Zealand are located in the Queenstown area.
Otago is known for its innovative
and enterprising tourist industries.
The region is home to AJ Hackett
Bungy New Zealand, which
opened the first commercial
bungy jump operation in 1988
and is now a globally recognised
brand. The Shotover Jet boat in
Queenstown was another world
first in adventure tourism, opening
in 1970.
Highlands Motorsport Park
is a new world-class yearround tourist destination and
international motor racing circuit
located in Cromwell, Central
Otago. About 50km from
Queenstown, Highlands is the
biggest construction project in
Central Otago since the Clyde
Dam in the early 1980s, and has
poured tens of millions of dollars
into the local economy during the
build phase alone.
Queenstown is currently exploring
the possibility of building a
major conference centre with the
capacity for up to 800 delegates.
Dunedin is taking advantage of
its legacy of ornate Victorian and
Edwardian buildings, regarded
as the best collection in the
Southern Hemisphere. The Flemish
Renaissance-styled railway
station in the city is one of the
most photographed buildings in
New Zealand.
High Quality Fruit and Wine
Central Otago offers excellent growing conditions for stone fruit producers due to its cold winters and warm,
dry summers. A planned irrigation project could unlock new productive land in the region and open up
investible opportunities in the secondary processing of high quality, stone fruit.
The region is also recognised for its boutique red wines and is New Zealand’s second largest producer of
pinot noir. Otago also offers an opportunity for international investment in market-led industry consolidation
and vineyard expansion.
5,685 hectares
120
median earnings for
manufacturing
wineries in Central Otago
9,020
93,900 hectares
1987
employees in primary industries
of irrigable land
the year the first commercial wine
was produced in Otago
R&D
83%
Major
national research institutions
including Plant and Food
Research at Otago University
of New Zealand’s planted area
for cherries
stone fruit growing region (one of
two regions in New Zealand)
Otago Polytechnic delivers local
and national programmes in
Sustainable Practice, ranging
from supporting businesses to
operate successfully in a futurefocused economy to reinforcing
the region’s focus on producing
high quality, organic food.
A planned irrigation project
will increase the amount of
productive land in Central Otago
and unlock potential for further
growth.
The Otago wine industry is
increasingly consolidating to
achieve economies of scale,
which creates investment
opportunities in the sector.
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The Central Otago Winegrowers Association (COWA) is a collaborative association of grape
growers and winemakers working together to share information and solutions on the issues
that face the region. The Association also acts as the local organisation of New Zealand
Winegrowers, the national organisation for New Zealand’s grape and wine sector.
The first commercial wine from
Otago was produced as recently
as 1987. Pioneered at Gibbston
Valley, the wine region is the most
southerly in the world. From this
collection of small vineyards the
region has continued to grow
and now produces 8,000 tonnes
annually. The region is also
diversifying its grape varietals
away from purely the pinot noir
into aromatic whites.
Central Otago Premium Fruit is the
collaboration between a number
of the district’s fruit growers who
produce cherries, apricots, apples
and other summer fruit. The
initiative draws on the provenance
of Central Otago – its distinctive
schist soils and climatic extremes.
The Central Otago Fruit brand
trademark represents superior
fruit meeting growing and quality
standards for overseas markets.
Established in 1952 New Zealand,
Milmeq develops, designs
and delivers food processing
technology to local and global
markets. The company meets its
customers’ requirements through
a combination of engineering
expertise in refrigeration, and
mechanical processes, controls
and analysis, using its core
manufacturing site in Dunedin.
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Who has invested in Otago?
Accor (France)
Accor, which has 3,576 hotels in 90 countries, manages four hotels in Queenstown:
Sofitel Queenstown Hotel and Spa, Hotel St Moritz Queenstown (a member
of the McGallery collection), Mercure Queenstown Resort, and the 273-room
Novotel Queenstown Lakeside. These properties span the range of Accor’s brands
from luxury to midscale. Accor has a strong network of 28 hotels throughout
New Zealand’s main centres and tourist destinations. CP Group, a private
New Zealand company, owns eight Accor hotels in New Zealand, with two Sofitel
hotels under development.
Louis Vuitton Moët Hennessy (France)
“We view this sale as a boost for the region, expanding the reputation of Central
Otago wine around the globe as a top quality Pinot Noir growing area.”
– Tom Pinckney, Chief Executive, Northburn Station
Cloudy Bay will invest in the Otago wine industry, subject to OIO approval, by
buying the Northburn Vineyard, part of the historic Northburn Station. Cloudy
Bay exports to over 30 international markets, and the Northburn Vineyard is the
company’s first outside Marlborough. Cloudy Bay is owned by Louis Vuitton Moët
Hennessy (LVMH), the global luxury goods group with an annual turnover of 30
billion euros.
Scott Technology
Scott Technology Limited is a Dunedin-based publicly listed engineering company
that specialises in the design and manufacture of automated production and
process machinery. It has sales and manufacturing facilities located in Dallas Texas
and Marion Ohio, USA; Bergamo, Italy; Shanghai and Qingdao, China; Santiago,
Chile; and Sydney, Australia.
The company operates either directly or through strategic partnerships in the
appliance manufacturing, mineral mining, meat processing and superconductivity
industries globally.
years, Shell New Zealand has been contributing to the economic prosperity of
environmentally responsible manner.”
– Rob Jager, Chairman of Shell Companies in New Zealand
Shell is one of the original pioneers of the New Zealand oil and gas industry. In
January 2014, Shell announced its decision to drill a gas exploration well in the
Great South Basin, off the coasts of Otago and Southland.
How Otago Compares
People
Dunedin has the
highest concentration
of residents with post
graduate qualifications
16%
65 Years +
14%
33%
40-64 Years
Land usage by area
33%
1,967,721 ha
34%
15-39 Years
32%
17%
0-14 Years
20%
0%
Otago
20%
7.0%
Horticultural land
5,685 ha
4.4%
Grain & crop land
67,676 ha
14.5%
All other
159,380 ha
10.7%
40%
$238
$430
Otago
New Zealand
52%
$250
Queenstown
$235
Dunedin
Employment rate
Overall life
satisfaction
Average household
income (2013)
67%
86%
$78,000
65%
87%
$88,400
Otago
achieved university
entrance standard
(2012)
18.5%
Forestry
113,490 ha
New Zealand
Education
% of New Zealand
New Zealand
Otago
New Zealand
Otago
New Zealand
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Welcoming Investors
Dunedin’s Economic Development Unit (EDU) plays a coordinating role
with Otago’s other regional economic development agencies and is the
first point of contact for investors, entrepreneurs, skilled migrants and
the business community.
Des Adamson
Manager, Dunedin’s
Unit
T +64 3 474 3785
M +64 27 278 4132
Wdunedineconomy.co.nz
dunedin.govt.nz
Goals
•Become one of the world’s great small cities,
renowned as a confident, competitive, productive
and sustainable knowledge centre and community
supported by enterprise and creativity
Dunedin recognises the benefits of supporting
commerce, and with that comes a proactive attitude
to assisting new business and investors. A culture
of constant improvement and a “red carpet, not red
tape” approach is taken.
•Create a collaborative and effective economic
environment to enable businesses to start up, grow
and flourish in the region.
The DCC, EDU and its partners help encourage local
economic prosperity by:
• Investing in new and existing infrastructure
•Facilitate the implementation of Dunedin’s
Economic Development Strategy, which has
been developed to increase skills, incomes, job
opportunities and investment in the region
• Supporting business development initiatives
•Support partnerships that harness and leverage
strengths and collaboration to create business
growth
• Working to ensure the city’s economy is resilient to
future change
•Partners in the Strategy are the University of
Otago, Otago Polytechnic, Otago Southland
Employer’s Association, Otago Chamber of
Commerce, Ngāi Tahu and DCC.
• Helping promote Dunedin to current and potential
investors, skilled staff and others with access to
resources
• Establishing a business management model to
manage the process for businesses and investors.
Chinese appliance manufacturing company Haier owns Fisher & Paykel Ltd, and the Dunedin design centre is
very important to its future. A Dunedin-led delegation including the Mayor and CEO of the Otago Chamber of
Commerce visited Haier’s headquarters in Qingdao, China, to deepen the relationship with senior management,
emphasising the city’s long history and the importance of Fisher & Paykel to Dunedin as well as the value
provided by the wider research and development community in the region. Haier confirmed its commitment to
strengthening the Fisher & Paykel design centre in Dunedin and has proposed to expand its operations.
ISBN 978-0-478-41643-5 1 July 2014
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REGIONAL INVESTMENT | SOUTHLAND
Southland
Southland applies scientific knowledge to
increase the productivity of its agricultural,
energy and mineral resources, and to
capitalise on its physical geography.
The region’s topoclimate surveys provide
a powerful knowledge base for investment
opportunities in agricultural diversification to
further develop high-value food processing.
Southland’s geographical position and
low electromagnetic noise levels are
an attractive asset for the international
space industry.
Regional Highlights
High-value
agriculture
Space tracking
and research
Pure silica oxide
resource
Growing international
workforce
Innovative food and beverage processing
Southland has a well-established food and
beverage sector driven by significant agricultural
production, with investment opportunities in
added-value processing of functional health foods
(eg oat milk).
Capitalising on natural resources
Southland has an investible opportunity in silica and
other mineral extraction, as well as in processing by
drawing on its mining experience, renewable energy
resources and engineering expertise.
A developing space industry
Southland has the potential to leverage its
environment and global satellite launches to become
a hub for providing data and satellite imagery for
agencies and commercial operators. This provides an
opportunity for further space-related investment.
Southland
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106
Rich in Knowledge, Innovation and Resources
Southland’s manufacturing base and major enterprises all reside within 70 kilometres of Invercargill, the
region’s capital city. Southland's booming dairy industry supplies two major processing plants, Fonterra at
Edendale and Open Country Dairy at Awarua.
The region is home to New Zealand's only aluminium smelter, located in Bluff. South Port is valuable
infrastructure for exporting processed metal, and for boat building and marine support services.
South Port has 15 hectares of vacant land adjacent to Bluff Harbour that can be utilised by off-shore operators.
Southland has 630 hectares of industrial land also available for development at an industrial park located
between Awarua and Bluff Harbour.
350,000 tonnes
of pure aluminium
produced each year
Highly
productive
soils support diverse
growing opportunities
World-class
200+ farmers
Four
capable of new
grain production
global food
processing plants
space-tracking
and atmospheric
research stations
Queenstown –
2 hours by road
Fiordland National Park,
United Nations World
Heritage Area
State Highway 6
Grain fields and processing
plants in central, northern
and eastern Southland
Manapōuri hydroelectric
power station
Silica oxide deposits
across region
Dunedin – 2 hours
30 minutes by road
Dongwha
Patinna NZ mill
Fonterra (Edendale) – accounts
for 25 percent of Fonterra’s
annual milk powder production
Invercargill Airport –
1 hour to Christchurch
Tiwai Point
aluminium smelter
Invercargill
Diatranz Otsuka
South Port
Sanford (Big Glory Bay)
Open Country Dairy
Awarua space-tracking
station and Unwin Radar
Shell New Zealand
Stewart Island
Great South Basin
Innovative Food and Beverage Processing
Southland’s well-established agricultural sector has investment opportunities in high-value food crop
production and added-value processing.
The region’s reputation for world-class produce, along with the presence of four large-scale meat, fish
and dairy processing plants and high agricultural productivity, underpin the strengths of Southland’s food
processing and export sector.
Southland has a specific opportunity in oat milk production and processing, and has a growing and successful
crop farming industry in barley and wheat.
61,376 hectares
Four
median earnings for
manufacturing
of grain and crop land
(13.1% of New Zealand total)
133 years
Growing
200+ farmers
of local dairy processing history
grain-based production industry
(64% increase over five years)
capable of new grain production
Research
Versatile land use
Highly productive
under way to unlock new crop
opportunities
with 170 distinct soil types
supporting highly productive
agriculture
dairy farms producing 12% of
New Zealand’s milk solids
Southland has an active business
network that researches and
explores new crop opportunities.
Southland has large areas
of high-class soils and
microclimates suitable for
growing a wide range of crops
and pastures.
The region is a base for several
large food processors including
Fonterra Edendale, Open
Country Dairy, Sanford and
Alliance Group.
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Fonterra’s Edendale dairy processing plant in Southland is the co-operative's oldest operating
manufacturing site and is part of Fonterra's network of more than 30 manufacturing sites across
New Zealand.
Southland's food processing firms can also access major ports in Dunedin and Christchurch.
Southland has excellent conditions
for growing oats and producing
oat milk, a nutritious product that
helps to lower cholesterol and is
suitable for individuals who are
lactose intolerant. The region has
identified potential growers to
commercially develop the product.
In Big Glory Bay (Stewart Island),
Sanford farms over 3,000 tonnes
of Greenshell mussels per annum.
After growing and harvesting,
these mussels are transported by
the company to their dedicated
mussel-processing facility. Sanford
also harvests about 3,000 tonnes
of salmon each year processed at
its fish-processing plant in Bluff,
Southland.
Alliance Group Ltd is one of
the world's largest processors
of sheepmeat. It accounts for
15 percent of the world's crossborder sheepmeat trade and it
processes around six million lambs
each year. The company’s head
office is located in Invercargill.
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Capitalising on Natural Resources
Southland has earned a reputation for leveraging natural energy and mineral resources to fuel industrial
development and has several easily accessible, high-purity silica oxide deposits. The deposits are suitable for
manufacturing solar photovoltaic cells and electronics-grade substrates. Southland also has an established
coal-extraction industry.
The region is home to New Zealand’s only aluminium smelter at Tiwai Point, powered by a hydroelectric station
in the region’s alpine hinterland. This electricity also supports Southland's food processing, wood processing
and alloy boat building industries.
$59,760 p.a.
99.4%
29%
median earnings for mining
average purity of quartz gravel
deposit for silica extraction
of regional GDP driven by metal,
food and timber manufacturing
Diverse
Accessible
325,000 tonnes
workforce across multiple
engineering and manufacturing
sectors
surface silica deposits readily
mined
of the world’s purest aluminium
produced annually by
New Zealand Aluminium Smelters
Support
350 million tonnes
High yield
from local authorities to develop
the natural energy and mineral
industries
of silica reserves for extraction
with the opportunity for vertical
integration
Regional stakeholders and
businesses are very supportive
of the mineral industries. The
Southland Energy Consortium
provides a central point of contact
to access support services.
Southland has access to green
and reliable hydropower as well
as roads, rail and sea transport,
and other raw materials to
support extractive processes.
Southland has recently attracted
several international investors in
energy and mineral extraction,
including Solid Energy and Shell
New Zealand.
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Solid Energy is New Zealand’s state-owned coal mining company and has mines throughout
New Zealand.
Shell New Zealand are drilling exploratory wells in Southland and are also operating oil and
gas fields in Taranaki.
Solid Energy is a state-owned New
Zealand coal mining company, and
the country's leading coal producer
with mines on the West Coast, in
the Waikato and in Southland. The
company’s annual coal production
is approximately 4 million tonnes,
evenly split between metallurgical
coals for export and thermal grades
for industrial uses and electricity
generation within New Zealand.
Manapouri Hydroelectric Power
Station, New Zealand's largest
hydro station with a capacity
of 800 megawatts, is located
in Fiordland National Park. The
station's generators are housed in
a cavern excavated from rock 200
metres below the surface of Lake
Manapouri. Ten kilometre-long
tunnels take tailrace water to the
sea at Doubtful Sound.
Southland’s Energy Consortium
represents local businesses focused
on the energy and exploration
support industry. The Consortium
combines a range of technical and
professional businesses. Southland
businesses, the regional transport
network and the port infrastructure
have a proven track record of
supporting offshore and onshore oil
and gas exploration and the mineral
industries.
A Developing Space Industry
Southland’s geographical advantage, unobstructed horizon and low electromagnetic noise levels make it well
suited for radio astronomy and the tracking of satellites in space. The region is looking to utilise its existing
tracking facilities as a platform for further expansion in the space industry and is also upgrading its facilities
for tracking, telemetry and data image-receiving facilities from remote-sensing satellites, to support new
satellite launches and to track launch vehicles.
Availability
Three global
median earnings for
manufacturing
of low-cost freehold land for
development
space-object tracking, earth
observation and atmospheric
research stations
900+
Low
Global agencies
skilled engineers with proven
experience in large-scale projects
electromagnetic noise
including PlanetLab and
European Space Agency
Doubled
Geographic location
Scientific research
the number of international
students enrolling in 10 years
provides a global advantage for
space research
partnerships involving local and
international research institutions
in a range of scientific endeavours
Southland is investing in the
skills and talent of its workforce
through the Southern Institute
of Technology and is attracting
international students.
The region's telemetry stations
at Awarua and Unwin utilise
Southland’s engineering
expertise in telecommunications,
construction and operations.
Southland has demonstrated its
engineering skills through a range
of projects including hydropower,
constructing food processing
plants and oil exploration.
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Southland is working with a number of agencies, including the Auckland University of
Technology, to establish additional advanced radio astronomy arrays.
The Unwin atmospheric radar forms part of the trans-Tasman SuperDARN (global Dual Aurora
Radar Network). It is a significant national and international research project that is focused on
auroral zones.
Venture Southland successfully
promoted and managed the
investment, development,
maintenance and operation
of a rocket tracking station in
partnership with the European
Space Agency. This relationship
has played a pivotal role in
the tracking of supplies to the
international space station and
laid the foundations for
future projects.
Venture Southland is developing
additional space-based services
from its Awarua Ground
Stations for the delivery of near
real-time Earth images to
support agriculture and fisheries,
search and rescue operations
and disaster recovery.
In 2013, San Francisco-based
Planet Labs invested in the
development of the Satellite
Ground Station in Awarua, resulting
in the construction of a 5m
antenna and radome in Southland.
Planet Labs are changing the
world of satellite earth observation
with their constellation of nanosatellites that will soon photograph
all the Earth every day.
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Who has invested in Southland?
Dongwha Patinna NZ Ltd (Korea)
Dongwha specialises in the manufacture of wood materials and is a leader in the
development of the Korean domestic wood industry.
In 2005, Dongwha acquired Rayonier, New Zealand's MDF plant at Mataura.
Rayonier's MDF operation was established in 1997 and manufactures 170,000
cubic metres of MDF annually. Renamed Dongwha Patinna NZ Limited, the plant
specialises in thin and high-density fibreboard products with 75 percent of its output
exported. This investment made Dongwha the largest MDF and particle board panel
producer in Asia and among the world's 10 largest makers of fibreboard.
Otsuka Diatranz (Japan)
Living Cell Technologies (LCT) is a biomedical research and development
company pioneering cell encapsulation and implantation for human therapeutics.
LCT has more than 2,000 shareholders from Australasia, Europe and the US and is
working to further strengthen its international shareholder base.
LCT has formed a joint venture with Otsuka Diatranz (Japan) to commercialise a
future technology relating to diabetes and Parkinson’s disease. The partners are
currently conducting trials using Southland’s unique virus-free Auckland Island pigs.
Pacific Aluminium (Australia) / Rio Tinto (Britain) and Sumitomo
Chemical Company (Japan)
“NZAS is an international company and is proud to operate out of Southland.
The smelter has been part of New Zealand’s industrial landscape for more than
40 years and is a key participant in Southland’s economy.”
– New Zealand Aluminium Smelters
New Zealand Aluminium Smelters (NZAS) is New Zealand's only aluminium
smelter and commenced operations at Tiwai Point near Bluff in 1971. The smelter
produces the highest purity aluminium in the world at 99.98 percent pure. High
purity aluminium is required for critical applications in many sectors including the
electronics, IT and aerospace industries. The smelter earns approximately
$1 billion a year in export revenue, contributes $525 million (10.5 percent) of
Southland’s GDP, and supports 3,200 jobs in the region.
years, Shell New Zealand has been contributing to the economic prosperity of
environmentally responsible manner.” – Rob Jager, Chairman of Shell Companies in New Zealand
Shell is one of the original pioneers of the New Zealand oil and gas industry. In
January 2014, Shell announced its decision to drill a gas exploration well in the
Great South Basin, off the coasts of Otago and Southland.
How Southland Compares
People
Southland is one of
New Zealand's fastestgrowing dairy regions
16%
65 Years +
14%
34%
40-64 Years
Land usage by area
33%
980,841 ha
30%
15-39 Years
32%
21%
0-14 Years
20%
0%
Southland
20%
40%
New Zealand
$430
Southland
New Zealand
44%
Forestry
72,485 ha
4.5%
Horticultural land
1,267 ha
1.0%
Grain & crop land
61,376 ha
13.1%
All other
80,893 ha
5.4%
$210
Invercargill
Employment rate
Overall life
satisfaction
Average household
income (2013)
69%
91%
$78,300
65%
87%
$88,400
Southland
achieved university
entrance standard
(2012)
9.2%
$177
Education
% of New Zealand
New Zealand
Southland
New Zealand
Southland
New Zealand
111
Welcoming Investors
Venture Southland is an experienced and professional economic
development agency with a robustly researched investmentattraction focus.
Steve Canny
GM Business and
Strategic Planning,
Venture Southland
T +64 3 211 1405
W venturesouthland.co.nz
Venture Southland’s purpose is to promote Southland, facilitate economic
and community development opportunities and add value to the region.
The agency is funded by regional councils and contracts out its services
as an economic research consultancy.
Venture Southland goals
•Identify new development opportunities and work
with interested parties to attract investment
•Provides investment assistance, information about
regional resources, regulatory requirements,
connections with local businesses and
investment analysis
•Boost business growth through a range of
activities and projects including informing
infrastructure development, communication
projects, science and radio science initiatives,
sustainable business practices, migrant and
workforce attraction, energy projects, primary
sector value-added export opportunities, business
support and training
•Develops sectors with a focus on performance,
productivity and profitability to increase export
receipts, GDP and employment
•Provides enterprise support to increase business
capability, resilience and innovation.
•Support an active international and migrant
recruitment programme to grow Southland's
skilled workforce. Student numbers grew
by 8 percent in 2013, the highest increase in
New Zealand.
Venture Southland attracted investment and managed the development and build of the Unwin Radar
and Awarua space tracking sites. In addition to ensuring appropriate funding, the agency ensured that the
building and maintenance of Unwin utilised local skills in construction and technical work. Venture Southland
also designed and managed the construction of the regional broadband service, as well as investigation and
exploration of Southland’s high purity silica reserves.
ISBN 978-0-478-41644-2 2 July 2014
112
ISBN 978-0-478-41644-2 July 2014
facebook.com/NZtradeandenterprise
www.nzte.govt.nz
@NZTEnews
linkedin.com/company/new-zealand-trade-and-enterprise

Regions of opportunity - New Zealand Trade and Enterprise

Transcription

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