Government boost for manufacturers

Three Southland businesses will be able to increase their manufacturing capacity thanks to a capital injection of $2.2 million from the Provincial Growth Fund.

McKenzie Marine and MacKraft (Bluff), McMaster Engineering (Winton) and Insol (Invercargill) have been chosen along with eight Otago businesses to benefit from the latest funding round; aimed at supporting economic growth and creating high-skilled jobs in the two regions.

Insol chief executive officer and founder Greg Simmons said the capital would help the architectural screening and facade manufacturer increase its testing capacity.

The business operates the only facade testing laboratory in the Southern Hemisphere where new designs are tested in a wind tunnel producing gusts of up to 200kmh, to ensure they can handle extreme weather.

‘‘Wind loading on [the screening] is a bit of a big deal,’’ Simmons said.

The $225,000 Insol would receive form the Provincial Growth Fund would be used for additional pressure measuring equipment, he said.

McMaster Engineering is due to collect $108,000, which will go towards an overhead crane, a sheet metal guillotine, and plasma table, allowing the company to serve Southland farms.

McKenzie Marine and MacKraft refurbish jet and fishing boats. The company intends using its $103,000 towards a milling machine and a CNC brake press – or metal folding machine – which could potentially increase production from 14 to 26 boats a year.

Bluff Engineering and Welding bought a CNC brake press with the injection it received from the fund in November 2019.

Business development manager Mark Egginton said the investment opened new doors for the company and brought in more work.

It was able to sign a contract with South Port and EIS to install trunking for cables on the South Port bridge.

‘‘We wouldn’t be able to do what they wanted without the kit,’’ Egginton said.

While the Covid-19 crisis had slowed things down slightly, he said the increased workload would mean the company could recruit more engineers in the near future.

Zenitec in Invercargill also received Growth Fund funding in November 2019 and managing director Lincoln Smith said it would give the business a clear advantage over its competitors. Zenitec produces a range of speciality textile-based products like protective clothing and fruit picking equipment.

The machine it hoped to buy would allow the company to produce these products faster and add additional features.

‘‘As far as we’re concerned, we wouldn’t be buying these machines if it wasn’t for the Provincial Growth Fund,’’ Smith said.

Regional Economic Development Minister Shane Jones said the latest funding round, announced Friday, would create about 43 new jobs in Southland and Otago.

‘‘The vision of these companies align with the Provincial Growth Fund’s objectives to increase productivity, create jobs and enhance economic opportunities in their region,’’ he said.

The engineering and manufacturing sector had been identified as a key sector for Provincial Growth Fund investment, Jones said, with Otago and Southland specifically targeted due to the high number of engineering and manufacturing firms.

Jones said businesses in the sector had been held back by a lack of capital for modern equipment and a shortage of skilled and unskilled labour. The Provincial Growth Fund sought to address this, he said.

The Otago businesses who will receive funding are Queenstown Engineering, AcuCut, Calder Developments, Waikouaiti Auto and Engineering, ZoomTech Limited, Datum Engineering, Cen Eng, and Precision Profile.

‘‘As far as we’re concerned, we wouldn’t be buying these machines if it wasn’t for the Provincial Growth Fund.’’ Lincoln Smith, Zenitec managing director