Malaysian economy appeals to Kiwi icons

By SIMON HENDERY

They'll soon be building our barbecues over there.

GLG New Zealand makers of kiwi icons the Kent log fire and the BBQ Factory gas cooker is shifting its production plant to Malaysia, with the loss of 60 Auckland jobs.

GLG says New Zealand's zero-tariff regime and a need to be nearer its major European markets has forced the move overseas.

"New Zealand is really not a manufacturing area any more," the company's owner, Roger Richwhite, said yesterday.

" It's not competitive worldwide.

"You don't have to be a rocket scientist to work out that when somebody gets paid a dollar an hour overseas and you've got to pay people between $15 and $25 an hour here, it's pretty difficult to compete."

Mr Richwhite, brother of Fay Richwhite principal David Richwhite, said GLG sold up to 90 per cent of its products in the Northern Hemisphere.

He said the move to Malaysia would also cut shipping times and costs.

GLG's assets have been sold to a joint-venture partnership with a Malaysian conglomerate, Brunsfield Corporation, which runs a string of manufacturing, building and technology businesses.

Mr Richwhite will continue to hold a stake in the company, which he founded in 1979.

The move will not affect the nationwide chain of 36 BBQ Factory outlets.

These are also owned by Mr Richwhite and will continue to be managed locally by GLG, along with the group's research and development division.

Twenty staff were laid off from GLG's Mt Roskill factory last week, and 40 more will lose their jobs when the shutdown is completed next May.

GLG's manufacturing equipment is being shipped to Malaysia, and will be installed at a new factory in Kuala Lumpur which is due to open in five weeks.

Chief executive Chris George said most of those made redundant had found new jobs or taken early retirement.

Mr George said GLG's barbecue business was sizzling, especially in Europe, where the popularity of the Australian soap opera Neighbours had fired enthusiasm for outdoor cooking.

GLG sold 175,000 barbecues worldwide over the past year, and total sales for the group topped $50 million.

With the new marketing opportunities Brunsfield offered the company in Malaysia, GLG was expecting sales to triple within the next five years.

"Globalisation is where we are at," said Mr George.

"There is a spin-off to New Zealand because we still employ a lot of New Zealanders through retail and at head office, and dividends which flow out of the new joint venture will flow back to New Zealand."