Orders book buoyant as boat firm rides recession

Wanganui boatbuilder Q-West is on the rebound - with major contracts signed and others in the wings.

Managing director Myles Fothergill told the Chronicle that if these other contracts fall into line then the company is assured of work well into 2013.

The latest project is an aluminium split hopper barge for Auckland company Pine Harbour and the 40m vessel will be the biggest physical assignment Q-West has undertaken.

Mr Fothergill said work was expected to start within a week with the aluminium "skin" for the barge being computer cut off-site and moved to the Castlecliff shipyard early next week.

"It's 40m long, 12m wide and 4m deep and is the biggest thing we've ever built," he said.

"It's too long for our bigger shed and too wide for the other shed so it means we'll build it in two halves."

The barge was unique, being built in aluminium when usually steel was used, Mr Fothergill said. The cost of steel had risen on the back of demand in China and the owners looked at aluminium as an alternative.

"It's a cost-effective option because steel needs painting inside and out and ongoing maintenance as well."

The new vessel is a split hopper barge which means it hinges in two points, separates at the bottom and dumps its load into the sea.

It will work in dredging operations in the Auckland coastal area. Delivery is due at the end of the year.

He said Q-West had built smaller barges but nothing of this size.

Mr Fothergill said it was the connection with Pine Harbour that helped get the contract, with Q-West having built five boats for that company already.

"They are now our biggest customer in terms of numbers and dollar terms."

He said the barge contract had come at a good time for Q-West.

"We've come through a bit of a lean patch from November through to January," Mr Fothergill. "Last year was our busiest ever and that lull let us get staff on holiday and for us to regroup as a company.

"We had to make some redundancies and that was unfortunate as we'd just come off the back of a major refit and a big contract as well.

"We've probably got staffing levels at a more manageable level but contracts coming up mean we will be employing a few more people."

Mr Fothergill said Q-West was finalising a contract with an offshore mining company as well as tendering for a lot of work in Australia.

"We know we're a favoured tenderer in one government project across the Tasman and that's due to be announced in the next month. We're confident about that.

"As well there are a couple of other New Zealand companies who want our boats, and price and rough water trials on one of those will determine that outcome," he said.

"We've put a lot of effort into sales but we just don't want to take on work for the sake of it.

"When there's a financial crisis people are out looking for bargains and we figure they're not the customers we need.

"We need customers who want us to be successful, provide a quality product and not cut corners doing so. That's what we're focussed on."