Navigation technology firm Navman is getting nearly $1 million in Government research and development funding, but the company is keeping mum on the project.
Technology New Zealand has contributed $998,000 through its Technology for Business Growth initiative towards a two-year project, the biggest Navman has undertaken, with a total budget
of more than $2 million.
The nature of the new marine product was being kept under wraps because of commercial sensitivity, the company said. But Navman intellectual property and strategic funding manager Paul Adams said it would provide boaties with more economic and effective navigation.
Adams said the project would create employment opportunities and bring new skills and expertise to New Zealand.
Navman is already scouting for five "highly skilled" engineers and expects the team to grow to about 15.
Although Navman has the support of US-based parent company Brunswick, Adams said the grant was crucial.
"This is a very significant project. We wouldn't commit to a project of this size and magnitude and undertake the economic and technical risk without the support of Technology New Zealand."
Navman was bought by marine and leisure technology company Brunswick for $108 million last year and is expected to generate revenue of about $400 million this year.
In March, Navman moved its Auckland research and administration operations to a new $4 million, 7900sq m head office.
Adams said all intellectual property developed from the project would be fully owned by Navman and remain in New Zealand for licensing purposes.
Technology New Zealand business manager Hamish Campbell said domestic retention of economic benefits, including employment growth and future re-investment, was a key consideration "so that the revenues will be realised here and so the tax will be paid here".
To qualify for funding, projects have to be technically challenging and make a strong business case for the company and wider economy.
Campbell said it was important "to see that the company is making a commercially sensible investment and that the returns to them, over the period of say five years, are going to be significant enough to warrant the investment we're going to make".
He said Navman's track record inspired investment confidence and the new Auckland head office displayed commitment to New Zealand.
"It's fairly evident that they're here for the long term."
