Skellerup spends $30m on new plant

Skellerup will enter into a contract with Calder Stewart Industries to build a world-class Dairy Rubberware development and manufacturing facility at the Wigram Business Park developed by Ngai Tahu Property.

Construction of the 18,900sqm facility is scheduled to be completed by December 2015. Sir Ron Carter, who has extensive major project business and engineering expertise, is overseeing the project for Skellerup.

The approximately 200 staff now employed at the earthquake damaged Woolston facility are expected to begin the staged transition to Wigram immediately upon completion.

Skellerup CEO David Mair says the integrated layout of the new facility offers considerable efficiencies over the multibuilding complex at Woolston.

“This is another significant step for our dairy business and great news for Christchurch. In addition to providing improved working conditions for staff, the new facility will capture process, flow and efficiency gains, further strengthening the operations of our dairy rubberware manufacturing business.”

Total project investment inclusive of levies and project management costs is estimated at approximately $30m which is partially covered by insurance proceeds from the settlement with insurers in respect of the damage suffered at its Woolston site from the Canterbury earthquakes of 2010 and 2011.