New Skellerup plant in Wigram

ALAN WOOD
Last updated 10:26 18/06/2014

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Skellerup Group will spend about $30 million on a new Christchurch manufacturing plant.

It settled an insurance claim for earthquake damage at its Woolston site in east Christchurch this year and then announced plans to move to south Christchurch.

The NZX-listed manufacturing company said today that it would enter into a contract with Calder Stewart Industries to build a dairy rubberware development and manufacturing facility at the Wigram Business Park.

Skellerup makes agricultural and industrial equipment, including the rubber dairy liners and rubber tubing used to take milk from cows in the milking shed into stainless steel vats.

The planned relocation follows the purchase of a 3.4-hectare Wigram site last year for $7.1m.

The business park, owned by Ngai Tahu Property, is on the edge of the Wigram Skies residential redevelopment on the old Wigram airfield.

The contract will be formally signed today by Skellerup Holdings chairman Sir Selwyn Cushing and Calder Stewart joint managing director Alan Stewart.

Construction of the 18,900-square-metre plant is scheduled to be completed by December next year.

Total project investment, including levies and project management costs, is estimated at $30m.

The 200 staff at the quake-damaged Woolston site are expected to move to Wigram.

Skellerup chief executive David Mair said the integrated layout of the new facility would have advantages over the multi-building complex at Woolston.

Stewart said the Skellerup project added to the list of significant contracts his company had under way.

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