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- Release Date: 14/05/13 11:16
- Summary: GENERAL: SKL: Skellerup finalises Christchurch land deal with Ng?i Tahu
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SKL
14/05/2013 09:16
GENERAL
REL: 0916 HRS Skellerup Holdings Limited
GENERAL: SKL: Skellerup finalises Christchurch land deal with Ng?i Tahu
14 May 2013
Skellerup finalises Christchurch land deal with Ng?i Tahu
Skellerup has secured its future in Christchurch after entering into an
agreement with Ng?i Tahu Property Limited to purchase a 3 ha site for $6.6
million in Wigram Business Park to house its substantial dairy manufacturing
operations.
Skellerup CEO David Mair said: "We are very pleased to have secured this
excellent site within Wigram Business Park. We have worked diligently to find
the best location to house our highly specialised manufacturing operation. We
are also delighted that it provides certainty for our team of 200 people
working at the current Woolston facility and who have managed through
difficult times to keep producing high quality products and servicing our
customers."
Ng?i Tahu Property Chief Executive Tony Sewell said: "It is great that two
long established Christchurch institutions are working together to relocate
Skellerup, one of Christchurch's industrial icons. Wigram Business Park is
proving to be a popular location for businesses relocating post-earthquake
with its close proximity to the Southern Motorway and the city centre, its
flexibility of use and the scarcity of light industrial land being available
within Christchurch city. An added benefit is the prospect of being close to
the rapidly expanding Wigram Skies residential community together with the
soon to be built recreational, leisure and retail facilities."
In preparation for getting new premises, Skellerup last year purchased a new
state of the art rubber mixing plant. The Company has also allocated capital
for the manufacture of additional moulding machines to ensure that the
business can relocate without interrupting supply to customers. The
introduction of the new rubber mixing plant will not only facilitate the move
but it will also mean that the Company will be able to produce a high quality
product more efficiently.
Skellerup's strong cash flow has enabled the company to focus on
substantially reducing debt over recent years. At 31 December 2012 net debt
stood at just $4.5 million. The purchase of the land and construction of
the new facility will be funded out of insurance proceeds, existing reserves
and unused banking lines.
Mair said: "With the site now secured we turn our attention to beginning the
project to build the new facility. Our planning is well advanced and we are
targeting late 2014 as the time for completion followed by the business
relocation to the new facility."
For further information please contact:
David Mair
Chief Executive Officer
021 708 021
Graham Leaming
Chief Financial Officer
021 271 9206
For media queries please contact:
Geoff Senescall
Senescall Akers Limited
021 481 234
End CA:00236188 For:SKL Type:GENERAL Time:2013-05-14 09:16:34
