Skellerup kicks $1m to US manufacturer
Skellerup is investing more than
$1 million into a United Statesbased liquid silicone rubber company as it looks to grow its overseas market.
The Kiwi company, which is famous for its gumboots and other rubber products, invested
US$1.1 million (NZ$1.6m) into Sim Lim Technic, giving Skellerup a 35 per cent stake.
Skellerup chief financial officer Graham Leaming said the US was the company’s biggest and fastest-growing market, ahead of Australia, New Zealand and Europe.
‘‘We’re known for our gumboots but we have a growing presence for our dairy rubberware development and manufacturing,’’ Leaming said.
‘‘We don’t have in-house manufacturing capability to produce materials made from liquid silicone rubber. That’s Sim Lim’s expertise and we wanted to harness that.’’
Liquid silicone rubber is an odourless product favoured for its hygienic properties and is used in medical, food and consumer products.
‘‘Our agriculture side of the business uses liquid silicone rubber to transport milk from the cow to the van. So we have to ensure high food safety standards.’’
Leaming said the company was also looking to extend its liquid silicone rubber range into other global markets, including Europe and Asia.
Skellerup’s profits rose to $117m in the six months ended in December 2017, from $8.9m the previous year.