South Pacific Tyres' poorly performing Upper Hutt factory has turned itself around, increasing production and attracting millions of dollars of investment this year.
South Pacific Tyres NZ chief executive Vaughan Renner said today production at the factory would boost production by 65 per cent in the next 12 months, creating 140
new jobs.
The $10 million expansion will see the factory move to seven days a week, 24 hours a day production from the current 24 hours, five days a week.
"The opportunity to take on the extra production is a reflection of the performance by the associates at Upper Hutt in moving the productivity of the factory from one of the poorest performers in the world to one of the most efficient tyre manufacturers," Mr Renner said in a statement.
South Pacific Tyres Ltd, a joint venture between Pacific Dunlop of Australia and Goodyear Tire Corporation of the United States, operates throughout Australasia.
The Upper Hutt expansion followed a reorganisation of South Pacific Tyres' Australian operations, and the rationalisation of some of its production capacity.
"We had to compete with other Goodyear factories to take up the production requirements, and it was the impressive efforts of our associates over the past decade that helped swing the decision in our favour," Mr Renner said.
Discussions with Industry New Zealand and Skill New Zealand also contributed to the decision.
Output will increase by about 1 million tyres to 2.4 million tyres a year. The majority of the additional output will be exported to Australian, European and Pacific markets.
"We will be transferring almost 60 new sizes of tyres into the factory and the moulds for these are currently being prepared. Some of the moulds will come from Australian factories, but all must be re-engineered to a greater or lesser degree for use in our factory," he said.
The expansion would not involve any new buildings.
South Pacific Tyres will ship 65 per cent more raw material into the country, becoming the Port of Wellington's biggest container user.
- NZPA
