AGVs can also deliver a cost cut

Larry Greene is finding a growing market for automated guided vehicles. Picture / Amos Chapple.

Fonterra's use of driverless forklifts at dairy factories could help a Hamilton company set up a manufacturing operation for automated guided vehicles (AGV) in the city.

RML has recently sold Fonterra three $250,000 AGV forklifts for use at its Te Rapa plant.

Laser-guided vehicles will be used at Te Rapa but AGVs can also be guided by other means, such as wires and magnets.

The pallet-shifting forklifts are due to be operational at Te Rapa in August.

Fonterra, reviewing staffing across all its operations, is not giving out a lot of detail about how widely the AGVs might be used in the pursuit of cost savings and other efficiencies.

It said that apart from the three coming in at Te Rapa, it had one AGV at Morrinsville and another was due at Te Awamutu later this year.

A spokesman said the company was evaluating whether, and how widely, they might be used at other factories.

RML said it was quoting on four sites where Fonterra might use the AGVs. It is, however, facing competition from foreign suppliers.

RML managing director Larry Greene said the biggest site being quoted on could take about half a dozen vehicles. He expects Fonterra to buy another 10 to 15 vehicles in the medium term.

RML said the main benefits of the AGVs included savings on labour: Three AGVs can replace six drivers over a 24-hour period.

Sales manager Alex van Dijk said they could also save time.

"The machines can respond to computerised instructions instantaneously rather than having humans who take time to brief and instruct."

He said the AGVs could reduce injuries and plant damage. The vehicles are programmed to pause and wait for instructions if their sensors detect an object - such as a wandering worker - not supposed to be where the machines are operating. Cutting out human error could stop forklifts crashing into buildings and plant.

The three AGVs sold to Fonterra come from Belgium-based Egemin Automation, where Van Dijk's father-in-law is a senior executive. RML now represents Egemin in Australasia.

Greene said lower costs in Hamilton meant it could be worthwhile for RML to manufacture AGVs there if it was able to secure enough orders, and make a dozen AGVs a year for Australasian clients.

"We're discussing with Egemin the feasibility of us manufacturing in New Zealand."

Greene said set-up costs would be under $500,000, given that RML already had a well-established operation.

Van Dijk said having a local manufacturing base could be a good springboard for sales of AGVs to a variety of sectors."All of a sudden we could be a lot more competitive if we could manufacture here."