Yachtbuilding plans brings export hopes

By DANIEL RIORDAN

Trade New Zealand expects the marine export industry to double in size within three years, anchored by an $80 million superyacht yard in Whangarei.

The Whangarei initiative, backed by American investors brought together by an expatriate Kiwi, Allen Jones, plans to create 120 jobs this year and more than 1000 within five years.

The new company, New Zealand Yachts, also plans to invest in factories, residential and hotel facilities and training to help provide it with the workforce it needs.

Marine exports were worth $240 million last year. Marine Export Group (Marex) executive director Lane Finley said the initiative would help the local industry to grow, rather than pose a threat to existing superyacht builders.

"It builds the infrastructure here, including training, increases the industry's international exposure and the word of mouth that talks of New Zealand as a place to build superyachts."

Existing builders, who already earned $55 million a year from exports, had their own niches in any case, he said.

The deal was facilitated by a group of government agencies, led by the Investment New Zealand arm of Trade NZ.

Associate Minister for Economic Development Pete Hodgson stressed that there was no financial inducement from the Government. Instead, it offered a lot of help pulling together the necessary local, regional and central government approvals to make the deal work.

Mr Hodgson paid tribute to Mr Jones. "He's a New Zealander returning home after a decade and a half, after making his money in the US. Very focused, very determined to succeed. Very demanding of us, but not in the least bit inappropriately so.

"He said, 'I'm in a hurry, I need to be in a hurry, are you guys in a hurry?' and we were able to say yes. He had a range of government issues to resolve, at local, regional and central level, and we managed to do that in a very short time."

Development of a 14ha site, bought from Northland Port Corporation by NZ Yachts, begins this week. Construction of the first superyacht, a 30m Wave Piercer catamaran designed by New Zealander Craig Loomes, begins in November.

The unnamed American investors have placed orders for that and two more catamarans, at $10 million apiece.

NZ Yachts expects that from 2003 onwards it will earn $120 million a year from building and refitting superyachts, the floating gin palaces attracted to this part of the world by the America's Cup.

Among them was Mr Jones' superyacht, a Wave Piercer called Spirit. He bought it after making his money in manufacturing in Wisconsin after the 1987 sharemarket crash. Trained as a mechanical engineer, he previously ran a successful business exporting car wash equipment to the US.

Mr Jones wants the complex to be the repair and valet shop of choice for the world's superyachts when they come down to the South Pacific.

He said many of the superyachts here for the America's Cup regatta had to go to Australia for refitting.

The success of the new facility would not depend on our keeping the Auld Mug because New Zealand's reputation as a superyacht builder and servicer would have been enhanced.

He was keen for other yacht builders here to take advantage of the NZ Yachts brand once it was established internationally.

NZ Yachts chief executive Terry Newby was operations manager for the Nippon Challenge in the previous America's Cup, and for the Australian defence in Fremantle in 1987.

The facility's construction manager is Tomek Glowacki, who has worked for some of the country's leading superyacht builders.