FSP Pacific moving to bigger site

FSP Pacific has bought land and expects to complete the transition from its present site within about nine months, said general manager Scott Lee. Photo / John Borren

Australian plastics manufacturer FSP Holdings, which established a New Zealand manufacturing operation in Tauranga in 2013, is now planning to move from Mount Maunganui to bigger premises in Papamoa in response to increased export sales.

Local arm FSP Pacific, which was a finalist in the recent Bay of Plenty Export Awards, has bought land and expects to complete the transition from its present site within about nine months, said general manager Scott Lee.

FSP is building a new factory on the site, which will double its current footprint to about 4000 square metres.

"It will let us streamline and restructure our manufacturing operations and improve productivity," said Mr Lee.

The new factory would not have an immediate effect on staffing requirements, he said.

FSP, based in Brisbane, uses a rotational moulding process to produce plastic lockers, fire safety products and mining equipment, which are then exported around the world.

The Tauranga factory is the company's major plant manufacturing cabinets and lockers, which account for about 60 per cent of FSP's global business. The majority of the New Zealand product was exported, although the company was also developing sales in New Zealand.

FSP has also set-up a factory in Houston, Texas to support its US exporting drive, and Mr Lee will be part of the team which goes to help commission the American facility.

"Exports have become huge. We're going into the US, which is excellent for us. We're competing with factories in China, and as far as I'm concerned, we're winning," he said.

FSP set-up in Tauranga after analysing the comparative merits of Indonesia, Thailand and New Zealand as possible sites for the relocation of the plant. FSP said at the time that competitive manufacturing costs, accessibility and frequency of import and export services, and the availability of skilled labour saw Tauranga emerge as the most attractive location.

Mr Lee said the company was satisfied with the port services, but hoped to see an improvement in access to international flights. However, he noted Air New Zealand had recently begun an Auckland-Houston flight, which would make it easier to visit the new US plant.

Priority One chief executive Andrew Coker said FSP Pacific was exactly the type of business the economic development agency was working to attract.

"They're highly innovative and export-focused, and most importantly, they have set-up here for the right reasons - efficient market access through the Port of Tauranga, competitive industrial land, and access to great staff."