Aucom 'hangs on' to revenue
Industrial power control company AuCom Electronics is in the final stages of negotiating a major project for water supply to Istanbul.
In June last year two major Turkish projects were nearing the tender stage and AuCom hosted Turkish delegates that month to reassure them the company was operating at full steam. Showing them AuCom's Addington facilities were relatively unscathed by the February quake and the firm was up and running and capable of fulfilling contracts, had paid off, chief executive Brent Archer said.
Turkey was a significant market for the company and Europe as a whole represents about 60 per cent of AuCom's market.
The business, which has about 130 staff had seen staff turnover of about 2 or 3 per cent immediately as a result of the earthquake and later on perhaps another 7 per cent had moved away but the firm had managed to replace lost staff. The major effect of the earthquake was on its people, Archer said.
The weariness from still having to deal with EQC and get damaged homes repaired was taking a toll.
Local suppliers of copper and aluminium busbars had faced their own challenges in keeping their own businesses running, but had been extremely agile and had managed to continue to supply AuCom.
Aucom had managed to ''hang on'' to revenue levels of last year this year, but without the growth it expected, but that was due to the relative strength of the New Zealand dollar against the euro. Europe represents about 60 per cent of Aucom's business.
''We're doing the same amount of work, but it's worth less. The exchange rate is taking away the profitability,'' Archer said.
AuCom's products are distributed to more than 110 countries, while its project work is focused in Turkey, Russia, the Middle East and China.