Australasia Outlook Issue 2

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Dubai travel guiDeA guide to Dubai’s best top attractions

greencross Paws for thought

northern iron anD brass FounDry A cast iron commitment pays off

Winstone Wallboards GIB – a New Zealand icon

We chat to Peter Cowan, GM of MICO Metals

Inside

Mico showing its Mettle

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3www.australasiaoutlook.com

All BlAcks on top of the worldNew Zealand’s 24-year wait to win the Rugby World Cup has come to an end. The All Blacks beat France 8-7 in the final in Auckland.

It was excruciating, a rugby rollercoaster that carried everyone watching along with it.

The All Blacks have held the number one ranking for longer than every other nation combined. In World Cups they have scored 610 more points than anyone else and 93 more tries, won 37 matches (five more than the next most successful team) and are the only team to finish first in their pool at every single tournament.

The win was overdue. Well done!

Enjoy the magazine!

Ian Armitage Editor

editoriAl editor – Ian Armitagesub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock writers – Colin ChineryJane Bordenave Robert Michaels

BusinessAdvertising sales Manager – Sean Brettresearchers – Nicholas DaviesStuart Shirra

sales administrators – Katherine EllisDaniel George

Accountsfinancial controller - Suzanne Welsh

production & designdesign & production Manager – Lisa Ferronimages: Getty news: NZPA, AAP, SAPA

digitAl & ithead of digital marketing & development – Syed Ahmad

tnt puBlishing ceo - Kevin Ellis chairman - Ken Hurst publisher - TNT Multimedia Limited

TNT Multimedia Limited,10 Greycoat Place, London, SW1P 1SBtntmagazine.com

enquiriesTelephone: 0061 (0)2 8518 1223Fax: Email: [email protected]

suBscriptions Call: 0061 (0)2 8518 1223Email: [email protected]

www.australasiaoutlook.com

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Contents

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Dubai travel guiDe

A guide to Dubai’s best top

attractions

greencross

Paws for thought

northern iron anD

brass FounDry

A cast iron commitment pays off

Winstone

Wallboards

GIB – a New Zealand icon

We chat to Peter Cowan,

GM of MICO Metals

Inside

Mico showing

its Mettle

06 NEWS

12 SkillS criSiS: Australia on the brink

16 PikE rivEr: What WENt WroNg

Monitoring gas in underground mines: Lives depend on it

20 FivE thiNgS to SEE iN Dubai

22 a WiNDoW oN thE WorlD Fletcher Aluminium designs develops and extrudes aluminium for some of New Zealand’s most trusted window and door brands

26 DivErSiFiED DElivEry General Manager of MICO Metals, Peter Cowan, tells Australasia Business Outlook how diversity has been key to the success of his business

32 PaWS For thought Greencross is expanding its network of quality veterinary practices

40 caSt iroN commitmENt We chat to Joe Vecchio of NIBF

46 NZ’S largESt maNuFacturEr oF

StEEl rooFiNg Dimond is a supplier of roofing, cladding and rainwater solutions, including tiles, long run roofing

FEatu

rES

FEatur

ES54 Family hoSPitality,

ProFESSioNal DElivEry

The Forman Group has virtually unparalleled experience in the delivery of insulation, ceiling tiles and interior wall systems

60 kEEPiNg motoriStS SaFE, SaviNg livES Zalman Paris, general manager of Australian Construction Products Pty Limited (ACP), talks to Ian Armitage

64 PiPE DrEamS Australasia Business Outlook profiles Iplex Pipelines, a division of Fletcher Building

68 lEttiNg quality SiNk iN Since the end of World War II, Tasman Sinkware has been providing Australian made kitchen and laundry sinks to the Australian and international markets

74 a NEW ZEalaND icoN Winstone Wallboards is New Zealand’s sole manufacturer of gypsum wallboards. Its GIB® brand is a New Zealand icon

co

vEr

6

Sport


NZ oil spill disaster

The oil spill from the container ship Rena, which struck a reef in New Zealand’s Bay of Plenty, has been declared the country’s worst maritime environmental disaster.

Officials urged people to avoid the area, warning that the water off Tauranga city had become “highly toxic”.

Fist-sized tarballs first washed ashore on 10 October, five days after the 236m Liberian-flagged container ship ran aground Astrolabe Reef, 12 nautical miles off the coast.

New Zealand’s Environment Minister Nick Smith said the oil spill was inevitable and the clean-up could take weeks.

“I want to acknowledge that this event has come to a scale where it is New Zealand’s most significant maritime environmental maritime disaster,” he said on Tuesday.

“The advice I’m receiving is that the amount of oil is five-fold what was released in earlier periods. “This operation is going to be a marathon, not a sprint.”

Oil spill declared ‘New ZealaNd’s wOrst’

7

Sport


Economy

The rate fell for the first time since March as employers added double the workers economists forecast, boosting bond yields and sending the local currency to a three-week high.

The number of people employed rose by 20,400, from a revised 10,500 fall in August, the statistics bureau said.

Economists, who had expected the jobless rate to stay at the August level of 5.3 percent, say the result lessens the need for an interest rate cut when the Reserve Bank of Australia (RBA) holds its Melbourne Cup Day board meeting next month.

Prime Minister Julia Gillard said around 750,000 jobs had been created since Labor came to office in 2007.

“Having a robust economy that can create jobs isn’t a matter of accident,” Ms Gillard told parliament.

The number of full-time workers rose by 10,800 in September, while part-timers increased by 9600 to a record high.

Carbon tax

Australia’s lower house of parliament has narrowly passed the carbon tax bill.

The new legislation will force Australia’s biggest polluters to pay for each tonne of carbon dioxide they emit.

“Today is a significant day for Australians and the Australians of the future who want to see a better

environment,” Prime Minister Julia Gillard said before the vote.After her Clean Energy Bill 2011 was passed with 74 votes

for and 72 against, she hugged colleagues and waved to supporters in the public galleries.

The tax is central to the government’s strategy to combat climate change, but the opposition says it will cause job losses and raise the cost of living.

Opposition Leader Tony Abbott said the nation had been betrayed “with a kiss”.

“Today this parliament has witnessed the unseemly spectacle of a government cheering itself for breaking its own election promise,” Abbott said.

“This prime minister shouldn’t just say sorry. She should resign.”

Australia’s heaviest polluters will pay A$23 for each tonne of carbon emissions, and households will be compensated through tax cuts or welfare increases for any increased costs.

It will be introduced on 1 July next year, and will then evolve into an emissions trading scheme three years later.

Australia is the world’s largest coal exporter and is one of the biggest per capita greenhouse gas emitters.

Carbon tax narrowly passes

australia’sj o b l e s sr a t edeClines

Sport

8

Economy Carbon tax

Australia’s opposition leader Tony Abbott has warned businesses not to invest in carbon offsets, because a future coalition government will rescind the carbon tax.

The House of Representatives passed the government’s clean energy legislation, which will put a A$23/tonne fixed price on carbon emissions from July 1, 2012, and bring in an emissions trading scheme from 2015.

Under the scheme, which is set to pass the Senate in November, a large portion of emissions reduction will come from Australian businesses buying carbon offsets from overseas.

Abbott told a tax forum in Sydney that scrapping the scheme would be a coalition government’s first order of business.

“An incoming coalition government’s first instructions to the public service would be to prepare legislation to rescind the tax,” he said.

“It would be our first order of parliamentary business.

“We will dismantle the bureaucracies it has spawned. We would take the upward pressure off peoples’ cost of living and threat to workers’ jobs.

“And we give businesses fair warning not to buy forward permits under a tax regime that will be closed down.”

Don’t buy

p e r m i t scarbon


Air New Zealand has announced it will buy seven new aircraft to increase capacity on regional flights and provide cheaper fares.

The new ATR72-600 planes will cost NZ$340 million and Air NZ has an option to buy another five.

It currently owns 11 ATR72-500s, an earlier version of the turbo-prop aircraft that fly between hubs in New Zealand.

CEO Rob Fyfe said the deal shows a commitment to regional travel, where the carrier is seeing a five percent annual growth.

“This order potentially doubles the size of Air New Zealand’s ATR fleet and will put a further two million seats into the New Zealand regional market annually,” he said.

air nZ to expanD fleet

SportSport

9

Economy

Growth in the Australian economy is set to pick up pace in 2012, according to the Westpac-Melbourne Institute Leading Index.

The index was at 4.5 percent in August, above the long-term trend of 3.3 percent.

Westpac chief economist Bill Evans said it’s too early to embrace the forecast that growth would surge above trend in early 2012, but the signal “warrants respect”.

Westpac predicts growth for the second half of 2011 will be consistent with the Index forecast from the first part of the year - at an annualised pace of around 1.5 percent - but below trend growth for the economy.

“Over the last six months, the growth rate in the Index has increased from 2.9 percent to 4.5 percent,” Evans said.

Cricket Australia has launched a global hunt for a new coach with chief executive James Sutherland saying they planned to think “outside the square”.

It follows former rugby union international Pat Howard being appointed general manager for team performance -- a new position recommended by the Argus Review earlier this year.

The sweeping review was ordered by the Australian Cricket Board after the Test team’s humiliating 3-1 Ashes series defeat to England.

The head coach, to replace Tim Nielsen who quit after the recent tour of Sri Lanka, will report to Howard and Sutherland.

“This is a pivotal role and we are thinking globally and also outside the square,” said Sutherland.

“International success as a player and/or coach may well be worthwhile attributes, but we will look far more broadly in assessing individuals against the specific criteria we regard as necessary for success in this role.”

Troy Cooley is acting as interim coach for the current tour of South Africa and Sutherland said he wanted a permanent man in the job as soon as possible.

Former New Zealand coach Steve Rixon is widely seen as a frontrunner for the job with former South African coach Mickey Arthur and long-time Australian Test batsman Justin Langer also reportedly interested.

CriCket AustrAliA hunts for A new CoACh


eConomiC growth set to piCk up:

westpAC

10 www.australasiaoutlook.com

Australian Treasurer Wayne Swan has called for concerted international action to pull the global economy back from the brink.

Mr Swan was speaking from London where he was for talks with the British government and business leaders.

Speaking to an Austrade business forum in London he said: “The question the world is now asking is whether Europe’s leaders have the courage and conviction to manage the new crisis with the boldness and determination that was evident in London two years ago.

“While leaders in the US and Europe have made some welcome steps recently, and despite good progress made by G20 finance ministers over the weekend, we still have cause for serious concern.”

Euro crisis

Swan urgeS action

Business

to raiSe a$500m

woolworthS

Woolworths has lodged a prospectus with the Australian Securities and Investments Commission (ASIC) for the offer of dated, unsecured, subordinated cumulative notes at A$100 each.

The offer is part of the company’s ongoing capital management strategy, and the proceeds would be used for general corporate purposes, Woolworths said in a statement.

“Woolworths is a solid cash flow generating business with a conservative balance sheet,” finance director Tom Pockett said in the statement.

“This offer further optimises our capital structure and is expected to further support our corporate credit rating.”

The offer is expected to open on October 26, with notes issued on November 24.

The offer will be open to institutional investors, Woolworths shareholders and members of the general public.

aluminium units up for sale


Sport

Business

New Zealand have been crowned world champions for the first time in 24 years after beating an inspired France team by a single point.

Tony Woodcock’s early try and a penalty from fourth-choice fly-half Stephen Donald were enough to see the All Blacks home in an extraordinary match that defied all pre-match predictions.

The All Blacks have held the number one ranking for longer than every other nation combined. In World Cups they have scored 610 more points than anyone else and 93 more tries, won 37 matches (five more than the next most successful team) and are the only team to finish first in their pool at every single tournament.

The final whistle triggered scenes of wild jubilation at Eden Park as a nation celebrated a repeat of the outcome from the very first World Cup final in 1987.

Mining giant Rio Tinto is trying to turn its disastrous, overpriced $US38.1 billion Alcan acquisition into a positive by putting 13 of its aluminium units up for sale.

Assets from the 2007 Alcan takeover to go include six Australian and New Zealand units and seven others from Europe, the UK and US.

Rio Tinto says it hopes the move will improve the aluminium group’s financial performance.

The Alcan acquisition cost 30 percent above market price and left the global giant saddled with massive short-term debt it has been paying ever since, amid the global financial crisis following the takeover.

rugby world cup

rio tinto puts

12

With the so-called “Resources Boom Mark II” currently dominating investment in the Australian economy,

resource industry employers are facing some significant challenges when it comes to addressing the issue of labour supply.

Resource industry employer group, AMMA, believes the shortages currently being experienced - as well as those forecast to occur - are further exacerbated by the need to attract workers to the resource industry, quite often with the very same or similar skill sets needed to address other areas of structural weakness or significant projects across the country.

AMMA Chief Executive, Steve Knott, says the situation is something akin to a “double-whammy” as between 2010 and 2012, more than A$70 billion worth of major non-resource infrastructure projects will get the go-ahead including rail, road, port, hospitals and sporting arenas.

“We have significant infrastructure gaps in the logistical supply chain - from mine site to export market - with ports, rail lines and road infrastructure requiring a significant

investment in order to upgrade their capacity to meet the impacts of the international demand for Australian resources.

“The skilled and professional workers often needed to develop these strategic assets are in fact in the very same talent pool required right now by resource industry employers.”

Mr Knott also said in order to understand the extent of the labour supply problem, as well as to be in a position to propose solutions; AMMA had systematically tracked its members’ experiences. “Our members reported widespread skills shortages across a range of professions and technical trades prior to the GFC taking effect in 2008, after which there was a significant drop in demand for most of 2009.

“However, from late 2009 to mid-2010, there have been strong signs of recovery in the demand for skills - and shortages have once again become widespread particularly in the professional groups including engineering and construction.”

To put the challenge facing Australian resource industry employers into perspective, in the six years from 2005


By Ian Armitage

A s k I l l s s h o r t A g e c o u l d s u f f o c A t e n e w r e s o u r c e p r o j e c t s A c r o s s A u s t r A l I A .

skills crisis

13

AMMA FEATURE

to 2011, the size of the resource industry workforce has effectively doubled to 213,200 people.

By 2015, the industry is expected to employ at least 250,000 people directly - and up to an extra 750,000 people indirectly.

This means the resource industry will need to find at least a further 40,000 people in addition to those people already working in the sector in the next four years, a feat made even more challenging when one considers Australia already has a low and steady national unemployment rate of 4.9 percent.

Knott says despite arguments to the contrary by some parts of the union movement, the skills shortage is a reality - with AMMA members saying its effects ranged from ‘somewhat detrimental’ to ‘making it extremely difficult to do business effectively’.

A survey of AMMA members in November 2010 found:• 93.8 percent were experiencing a shortage of professionals [with 81.3 percent of these identifying difficulties in filling engineering roles];• 68.8 percent said they were experiencing

www.australasiaoutlook.com 13

ashortageoftradespeople;• 12.5percentsaidtheywereexperiencinga shortageofgraduates;and• 6.3percentsaidtheywereexperiencinga shortageofunskilledworkers.

Addingtothechallenge,KnottarguesAustraliacurrentlyhasanextremelymobilelabourforce,andaverylowrateapprenticeshipcompletionrate.

Withupto60percentofemployedmalesactivelylookingforotherjobs,careersintheresourceindustrytypicallylastfromonetofiveyears,withanannualturnoverrateinmanyofAMMA’smembercompaniesofaround15percent.

“Oursectorisnotimmunefromhavingitsownhighlytrainedandqualifiedworkers,oftenthoserecruitedfromoverseasatsignificantexpense,movingontootherindustriesandemployersoncetheygainexperience.”

Hesaidotherindustriesweresometimesmoreattractivethantheminingindustryinthelongtermbecauseoflifestyleandlocationpreferences.However,generouswagesmadethe

miningindustryattractiveintheshorttomedium-term.AsofFebruary2011,full-timeadultordinarytimeearningsintheminingindustrywereA$2,098.90aweek(A$109,142.80ayear)comparedtoA$1,291.30aweek(A$67,147.60ayear)acrossallotherindustries.

ThecompletionratesfortradeapprenticeshipsinAustraliaarealsoquitelowacrosstheboard.In2008,completionratesforpeoplethatstartedtheirapprenticeshipsin2003rangedfrom44.7percentto55.1percent.

Inarecentaddresstoanationalforumofexplorationcompanies,KnottsaidAMMAmembersweretakingstepstoaddresstheskillsshortageundertheirownsteamsuchasincreasingin-housetraining;multi-skillingexistingworkers;andimprovingskillsutilisationbetweenroles.Healsooutlinedsomekeyareas,whichAMMAbelievedwerepartofthesolutiontomeetingtheresourceindustry’slabourforcechallenge-namelyskilledmigrationandincreasedfemaleparticipationintheindustry.

“Despiteresistancefromsomequartersoftheunionmovement,AMMAbelievesaccessing


skilled and semi-skilled labour from overseas is a necessary adjunct to training Australian workers and sourcing workers locally,” he said.

AMMA recently welcomed an announcement of the Federal Government to introduce Enterprise Migration Agreements, which for large resource projects will provide streamlined access to skilled migrants, pre-qualifying employers for sponsorship and reducing agreement-negotiating timeframes.

EMAs are intended to act as an overarching agreement, which will allow a project owner or prime contractor to establish the number of skilled overseas workers and occupations required on a project, in a not dissimilar way to how labour agreements operate. However, EMAs are ‘mega’ resource project-specific, applying only to projects with a capital expenditure of A$2 billion or more and a peak workforce of at least 1,500.

Knott said AMMA would continue to pursue a number of reforms to the current skilled migration scheme in the interests of its members, including:• Reducing the onerous nature of the English language proficiency testing;• Reducing the A$2 billion threshold applying to EMAs so as to ensure a greater number of resource industry employers could access the scheme; and,• Revising the current 457 working visa arrangements.

On the issue of English language testing, in

November 2010, 38 percent of AMMA members said the increased English language testing requirements had made recruiting skilled labour from overseas more difficult.

In relation to the other important issue of improving female participation in the industry, AMMA recognises the proportion of women in the Australian resource industry is relatively low. In 2001, just 11 percent of the mining industry workforce was female, which has grown to 16 percent ten years later in 2011. In mining exploration and other support services, there are currently a higher proportion of women than in the mining industry as a whole, at 17 percent.

Knott, however, says such figures are not an indication of how much the industry values women as employees, with an overwhelming 91.7 percent of respondents to an AMMA November 2010 survey saying they would like to employ more women if they were available.

Overall, AMMA believes access to temporary and permanent overseas skilled labour is a small

but important component to developing a highly competent resource industry workforce, with the long-term intentions of employers in the industry being to up-skill and supplement the Australian workforce rather than replace it.

With this in mind, AMMA is advocating for employers to embrace a multi-faceted approach to tackling the skills shortage in the short and long-term in order to ensure the benefits of the current resource boom flow to the industry, the economy, workers and their families. END

Our sector is not immune from

having its own highly trained and qualified

workers, often those recruited

from overseas at significant expense, moving on to other

industries and employers once they

gain experience.”Steve Knott

AMMA FEATURE



Pike RiveR: what went wrong and how could it have been avoided? By Mark Everson

Monitoring

the gas explosion at New Zealand’s Pike River coal mine in November 2010 reinforced to Australian coal miners that safety demands

never-ending vigilance. Pike River asks these questions of all miners: what went wrong and how could it have been avoided?

Mining engineers and geologists will correctly point out that mine safety begins

with mine design; others will talk about risk assessments and the role of management to provide leadership in areas of safety. As mine gas experts, Simtars and others have focused on the vital role of gas monitoring in maintaining safe working environments in underground coal mines.

In particular, the role of the tube-bundle system in the suite of gas-monitoring systems

in undErground coal MinEs: livEs dEpEnd on it gas

17

Pike River: What went wrong? FEATURE

has come to the fore. Simtars believes that the tube bundle, used in conjunction with other sensor systems, is essential to maximising understanding of an underground coal mine’s atmosphere.

Coal-dust exPlosions

For the benefit of those without an underground mining background, the generalised mechanics of a coal-dust explosion are as follows.

1. There is a build up of methane gas in the mine. Methane is explosive in the range 5 to15 per cent. Outside this range, the gas is generally not explosive, so these are the critical limits within which underground coal mines are managed—with margins added to compensate for human and technological errors and lead times.

2.A source of ignition provides the spark. This ignition source could be mechanical, electrical or a naked flame or spark, e.g. the

sort produced by spontaneous combustion (coal has the propensity to self-ignite) or by faulty electrical equipment.

3. The methane gas explosion causes a shock wave that lifts coal dust from walls, ceilings and floors and into the mine atmosphere, creating a highly explosive mix if combined with the right amount of oxygen. The coal-dust explosion causes an even bigger shock wave that travels ahead of the flame, lifting coal dust into the air to form an explosive atmosphere that is then ignited by the close-following flame. Hence, the explosion can be propagated throughout the mine.

All coal produces methane gas to varying degrees. Some coals produce large amounts of gas, some coals hardly any methane at all, but the presence of methane gas is a given when mining coal. Mining releases some of the methane gas from the coal and exposes greater amounts of coal surfaces to oxygen, causing oxidisation and eventually


gas

spontaneous combustion.Some coals and some mines lend themselves

to pre-drainage where drilling and gas drainage is carried out before mining, to reduce the amount of gas in the coal seam.

All coal mines require ventilation, to keep the workers supplied with oxygen, to control temperature and dust levels, and to stop the build-up of dangerous gases such as methane and carbon dioxide. Coal becomes prone to spontaneous combustion when it comes into contact with oxygen, so the ventilation system that is essential to mine operations is also an enabler of spontaneous combustion, mine fires, and gas explosions.

Oxygen is essential for a mine fire, as it is for a methane gas or coal dust explosion. But because it is also essential for humans, eliminating it is not an option. Instead, gas levels need to be constantly monitored.

Gas monitors

Today, modern coal mines have a wide range of gas monitors.

The equipment used in modern underground coal mines carries built-in gas monitors and cut-out switches that turn the machinery off once a set threshold of gas is detected. In Australia this is usually 1.25 per cent methane.

Miners carry their own personal digital gas monitors on their belts, which are alarmed to beep when threshold gas levels are reached.

Electronic gas monitors are also placed in strategic places around the mine. These feed gas readings back to a centralised control room on the surface and the results are displayed on computer screens. They are called real-time sensors because the data displayed is a current and instant reading.

Some mines also use a tube-bundle system to draw mine atmosphere samples from strategic areas within the mine. The tubes suck in atmosphere continuously and transport it via the tube to the surface for analysis, the best systems continuously sampling and analysing the data. With tube bundles there is a lag time between the taking

of the samples and the analytical outcome because it takes time to pump the sample to the surface and time to do the analysis. As the sampling is continuous, the results can be trended and potentially dangerous gas levels can be detected early. Tube bundles can sample from remote areas of the mine where it is not practical to locate a real-time sensor.

With a tube bundle, analysis takes place on the surface in a purpose-built room. Sensors are less prone to damage and can be easily checked and recalibrated. In addition, samples can be fed into a gas chromatograph (GC) for more detailed analysis.

GCs are capable of detecting very low limits of indicator gases such as carbon monoxide, ethylene and hydrogen, and so can help detect the first signs of spontaneous combustion.

Gas analysis

Simtars’ main contribution to this system is its suite of software programs that enable the storage and presentation of gas readings so that they can be easily interpreted by gas-monitoring experts and mine workers alike. The strength of this system is its ability to take a large amount of potentially confusing data and present the information in a readily accessible form. The system also provides atmospheric trends and shows the mine atmosphere as it has been over a long period and the direction in which the gas concentrations are heading.

Like a patient recovering in intensive care where the signs of life are constantly monitored and a picture of stability/normality is created, any variation from the norm raises an alarm and asks the question that must be answered: why is the mine atmosphere deviating from the norm?

The GC allows for bag samples to be taken in specific areas underground and then tested back in the surface laboratory. These bag samples give a second opinion or point of reference and enable comparisons of the readings coming from real-time sensors, and the tube bundle. This provides the mine with a more accurate picture of any potential danger.

Pike river: What went wrong? FEATURE


Another benefit of the tube-bundle system is that if there’s a fire or gas explosion in the mine the tube bundle can, in many cases, continue to provide atmospheric readings and other information that may be essential to safely managing a possible recovery operation. If the tubes are destroyed in the fire/explosion, new tubes can be lowered into the mine to give some indication of what’s actually happening underground. At Pike River, the heat of the fire required metal tubing to be used. These were lowered down vertical shafts and provided the information required to stabilise the atmosphere and possibly recover the mine.

Xuandong Mine no.2

Over the past two and half years Simtars has managed the Australia–China Coal Mine Safety Demonstration Project, at the Xuandong Mine No. 2 in the Hebei province, north West of Beijing. The project, which ends in December 2011, is jointly funded by the Australian Government and the Chinese Government and the mine itself through its parent company the JiZhong Energy Group.

The project has focused on safety, from mine design to strata management, ventilation, risk assessment, gas drainage, gas monitoring and safety training for workers and managers at the mine. As the project draws to an end, the mine is preparing to install a tube-bundle system to support its existing real-time gas monitoring system, and Simtars is supporting the system by providing a Mandarin version of its gas-monitoring software.

Simtars’ belief is that all four gas-detection devices are required—portable real-time monitoring, fixed real-time monitoring, tube bundle and bag samples. However, miners must be able to read and understand the analytical data quickly and in the context of the mine they are working in—that is, in relation to the mine plan and mine ventilation.

Simtars’ mine gas software, among other things, uses the Ellicott diagram to trend gas movement in the mine and make it readily available for all mine workers to easily understand.

The blue arrow in the diagram below indicates the trend line of the mine’s gas mix and the direction it is heading; in this case towards the (red) explosive zone.

ConClusion

In short, more research, and more education and training in gas monitoring can only improve mine safety. A coal mine depends on a number of integrated and interdependent systems and disciplines, and all areas of the mine need to understand the inter-relationships and to play their part in achieving sustainable mine safety.end

Typical tube-bundle room on the surface of the mine

The Ellicott diagram

Pike River: What went wrong? FEATURE


20 australasia business outlook

D u b a i c a n ’ t h e l p b u t s h o w o f f . I t g r a b s e v e r y o p p o r t u n i t y

t o r e v i t s e n g i n e t o d a z z l e a n d d e l i g h t .

B y I a n A r m i t a g e

Enormous highways weave around the buildings and on the smooth, stretched road all manner of luxury cars are driven by expats and local-born Emiratis, who make up about 12 percent of the population.

The city, the second largest in the United Arab Emirates after Abu Dhabi, has an astonishing array of fairy-tale structures. You will have to visit yourself to decide if these creations are impressive or plain preposterous.

Here are 5 highlights that no tourist should miss:

1. Burj KhalifaThe world’s tallest building pierces the

Dubai sky at 828 metres (almost three times the height of the Sydney Tower). For visitors,

the main attraction is the observation deck on the 124th floor. Tickets are available at the ticket office or online at www.burjkhalifa.ae.

2. Burj al araB hotelThe world’s most luxurious and expensive

hotel, the Burj Al Arab, is a remarkable building designed to resemble a billowing sail. Pop in for a drink: The hotel is home to the world’s most expensive cocktail, costing AED 27,321 ($A7,240). It’s made of 55-year-old whiskey, dry fruit bitters and ice cubes from the Macallan distillery and stirred with a piece of wood from the original Macallan sherry casks. To book yourself in for a drink or a room visit www.jumeirah.com.

3. the World archipelago

D u ba it h I n g s t o s e e I n

1.


21australasia business outlook

Dubai FEATURE

This vast engineering project sought to create an archipelago of 300 man-made islands off the coast of Dubai. The islands, created from sand dredged from the sea, were to be the playground of the rich, but since the global financial crisis hit the project has slowed in development. To read more about the scheme visit www.theworld.ae.

4. Dubai MallOne of Dubai’s greatest attraction for

visitors is its superb shopping. The city offers plenty of bargains due to it being an open port with low import duties and no taxation. Dubai Mall is Dubai’s largest shopping centre with around 1000 shops. It’s also home to a 50m long aquarium. If you like to ski in between shopping then head to the

Mall of the Emirates, which has about 500 shops, as well as an indoor ski resort.

5. JuMeirah MosqueThe mosque on Al Jumeirah Road is the

only mosque in Dubai open to the public and welcoming to non-Muslim visitors. It’s a stunning building and well worth a visit. Remember to dress modestly.

GeTTiNG There: Emirates has unveiled Early Bird airfares to destinations across Europe, the Middle East and Africa for travel in 2012.

Airfares to Dubai are from A$1650 return. Emirates operates 70 flights per week from Brisbane, Melbourne, Perth and Sydney. Visit www.emirates.com. END

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4.

5.


Fletcher Aluminium, part of the Fletcher Building group of companies, designs, develops, fabricates and extrudes premium

aluminium. The organisation is primarily involved in the provision of aluminium for use in the New Zealand windows and doors market and is one of the biggest operators in this area.

It also has a division dedicated to commercial facade systems for large-scale projects and a third providing custom aluminium extrusion solutions to all other sectors.

The company supplies windows and doors to both the building trade and individual homeowners under the brand names Vistalite, Nebulite, Rylock and Fisher Windows & Doors.

www.australasiaoutlook.com22

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w i n d o wo n t h e w o r l d

Fletcher Aluminium FEATURE

These brands operate on a franchise basis, as marketing manager Ronnie Pocock explains. “All four of these brands are in fact older than Fletcher Aluminium, which was founded in the mid 90s. Over the past 20 years, we acquired these brands, but we recognised the value they had as individual businesses. So, they continue to operate on a franchise basis, dealing directly

with the clients while sourcing their aluminium from us.”

All of the design and development takes place in house at Fletcher Aluminium in conjunction with its franchised fabricators. “The franchisee brand is at the coalface of the market. They interact with the architects, builders and homeowners so experience


w i n d o wFletcher Aluminium designs develops and extrudes

aluminium for some of New Zealand’s most trusted window and door brands. Through innovation,

quality and understanding of consumer and market demands, it has become a genuine leader in its field, as

Australasia Business Outlook discovers. By Jane McCallion



firsthand what their expectations are. In turn they are able to escalate these expectations and market demands to the Fletcher Aluminium team who then can address and meet these requirements,” Pocock.

The windows and doors marketplace is extremely competitive, not least because every house needs them whether it’s a new build, extension or simple replacement. Thus, it is very important to stay ahead in terms of innovation and new technology. “Falling behind technologically is not an option – you always have to keep up on top of the competition,” says Mr Pocock. “We have always considered ourselves to be leaders and innovators in this area, as we were the first to develop a lot of the systems that are now commonly in use in New Zealand.”

In 2003, Fletcher Aluminium developed an innovative solution; the Foldback ® Bifold that is still largely unrivalled by its competition. “Six years ago, we patented a door system that allows the bifold panels to wrap 180º and lie flat against the cladded wall,” says Pocock. “In the past, we haven’t always been able to maintain exclusivity, but with this product, as it has been patented, and is original to Fletcher Aluminium it really does set us apart from the competition in New Zealand.”

While sometimes innovation can be a result of product evolution, at others it can be provoked by external forces. In 2010, there was a code change in building regulations, which stated that the thermal performance of all windows and doors had to be more efficient. In theory, this is very easy to achieve, explains Pocock, as if you use double-glazing you will achieve the thermal efficiency required. However, if you are producing folding or sliding doors and windows, as Fletcher Aluminium and its franchises do, double-glazing itself presents problems. “Double glazed windows or doors are significantly heavier than their single glazed equivalents,” he says. “So we needed to develop platforms that could carry this new load.” In 2010, Fletcher Aluminium

introduced a new bottom-rolling version of their Euroslider® “we had previously been using a top-rolling mechanism, however, when double glazing became almost mandatory, we moved almost exclusively to bottom-rolling products. This is simply because they are easier to manufacture, more versatile in application and carry nearly twice as much weight; the application of top-rolling, double-glazed doors are still popular when trying to achieve a totally smooth sill.”

Of course, innovation by itself doesn’t drive a company forward – you have to be able to sell it. With this in mind, last year it introduced the use of Salesforce CRM software, which allows the franchisee to monitor sales and clients. “It gives us more transparency on the type of client, product requirements and conversion rates. This means we can both try and assist the franchisees with different sales approaches or change the marketing strategy to suit.” says Pocock.

The franchising system that Fletcher Aluminium has in place presents both opportunities and challenges. In 2000, the four brands were re-organised so that, while they sell under different names, they are effectively each selling the same range of products, “In some ways, it may seem more logical to bring

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all brands together under one brand. However, one of the reasons we acquired these brands in the first place and the main reason we keep their names is their successful and long-standing relationships with clients and their long-standing heritage in New Zealand. It does bring its difficulties though. We are reliant on them to make sales and bring in revenue, as it is they who are meeting clients and closing deals, not us. So we have to make sure that they have access to all the right skills and that they are able to act as an effective sales force.”

In the future, the company sees itself continuing to grow and maintain its position as an innovator in the New Zealand windows and doors market. Within five years it hopes to have grown its market share by 15 percent and particularly to have grown its footprint in the South Island. “One of the things we will be doing is opening up a fabrication plant there,

which will be a new business area for us that we haven’t touched at all. The intention is that the franchisees who are on the South Island will keep their normal workload but if there is any overflow they can come to our factory and we will make and distribute the additional product,” says Pocock. He also thinks that some growth may come from acquisitions but that, above all, attention to the basics is the key. “We will also be looking at how to be more responsive with timing and more attuned with our customers’ needs if they need us to delay or bring forward a delivery, for example. These are the things that will drive our growth and increase our success in the future.”

END

To learn more visit www.www.falum.co.nz


D i v e r s i f i e D

MICO Metals is a leading importer and distributor of semi-finished aluminium, copper, brass, zinc and

stainless steel products for New Zealand manufacturers. The company has a number of exclusive contracts with suppliers from around the world to ensure that its customers receive the best quality available anywhere. It has a varied client base, from makers of sinks and bathroom fittings through to builders of luxury yachts.

The business was founded by Zigmund Hirschfeld in Wellington in 1945 under the name Metal Import Company, which was

General Manager of MICO Metals,

Peter Cowan, tells Australasia Business

Outlook how the diversity of products

on offer has been key to the success of his

business. By Jane McCallion

d e l i v e r y

quickly shortened to MICO. In 1980 it merged with another of his Metal Companies, Wakefield Metal, to form MICO Wakefield Ltd. In 1994 MICO Wakefield was acquired by The Crane Group, Australasia’s largest merchant of plumbing supplies, having previously distributed Crane’s copper, brass and aluminium product in NZ. This year, The Crane Group became part of Fletcher Building – the largest construction company in New Zealand.

The core of MICO Metals’ business, that is to say the import of semi finished metals such as aluminium sheeting or coil, is divided in to two parts: Merchandising and its

work with Original equipment manufacturers (OEMs), “The merchandising aspect of our business is fairly straightforward,” says Peter Cowan, General Manager of MICO Metals, “It is simply importing the products, storing it as one of our warehouses and then marketing it to local companies in New Zealand.”

While the merchandising aspect of the business is important, it is the relationship with New Zealand OEMS that has long been its mainstay. “We are working on a continuous basis with most of New Zealand’s major manufacturers,” says Mr Cowan. “It’s very different to the merchandising aspect

Focus: Fletcher Building Group

d e l i v e r y



of our business. Whereas merchandising is reliant on short lead time jobbing work, here it is the customer leading the way. Often what these clients are looking for is unique to their requirements, so they also get to dictate the level of quality they are looking for and the price they expect to pay. We take these specifications and find the right supplier, wherever they may be in the world.”

MICO Metals supplies to a wide range of customers across numerous industries, which Mr Cowan sees as one of its major strengths. “We are a very diverse business, which is a key part of our success. We deal with a number of different product and market categories, and what that means is that, while we may not necessarily be the biggest company in one particular sector, overall we are one of the largest non-ferrous metals suppliers in the country.”

As with the rest of the world, the global financial crisis caused a slump in New Zealand manufacturing that continues to this day. “We only have a small domestic economy in New Zealand and our manufacturers rely on exporting their goods. While New Zealand may not have been as

badly hit as some other countries around the world, when the crisis happened, the orders from those that were badly affected were scaled back, which led to a downturn in local manufacturing. When you add to that the strength of the New Zealand Dollar, local exporters had a very hard time,” explains Cowan. “However, the Australian market is

kmekme offers its customers a wide and diverse range of industrial rolled products that are used in the electric and electronics industry, household appliance manufacturing, the automotive industry, mechanics, minting, metal small wares, solar energy technology, telecommunications, decorations and decorative objects, and consumer products. specific expertise and assistance for every aspect of their business kme’s excellent service quality draws on decades of in-depth industry know-how. The intense dialogue we maintain with users throughout industry means that we are in a position to provide our customers with the best solution for their specific needs. customer-driven advice on all matters relating to material qualities, application possibilities and products is always near at hand through our highly qualified sales network.

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and has always been key for many of our customers and it has fared better than many other nations.

“Of greater concern for New Zealand business has been the continued loss of manufacturing capacity and knowledge as local manufacturers have re-located production offshore, or moved to importing finished goods and components in an effort to compete with predominantly cheaper Asian products. Whilst we will recover from market downturns in time, it is highly unlikely this manufacturing scale will return to NZ. This has impacted local suppliers to a far greater extent given the shifts will likely be permanent.”

Aside from the diverse nature of the business, Cowan also attributes Mico Metals’ success to the quality of training received by its staff and to its health and safety record, which he believes go hand in hand. “We have always provided training to our employees, but since becoming part of Fletcher Building, this has been augmented. Our employees now have access to a number of online courses, from trade practices through to very senior management programmes, which they can apply for at any time.”

There are also some courses available to staff members’ families through the same scheme.

The company has an excellent health and safety record and has been injury free for a number of years. “The health and safety of our team is very important to us and we are proud of our zero injury record. We have managed to achieve this through putting in place strong behavioural management systems,” says Cowan. “We maintain this through on-going training, including management. For new recruits or people who have just moved jobs within the company, we provide extra daily shop floor training to bring them up to speed.”

For the future, Cowan believes that the MICO Metals’ continued success lies in on-going diversification. “Fundamentally, we’re a very mature business operating in a very mature market. We import, warehouse and distribute products, so it makes sense for us to look at

what different areas we could be doing this in. This has always been our key strength and is what I believe will fuel our success going forward.” END


Dr Glen Richards is one of the founders and Managing Director of Australia’s leading veterinary services company Greencross

Ltd. After graduating from the University of Queensland in 1988, he completed his Post Graduate Research Masters in 1992 at James Cook University, researching production and reproduction parameters in Bos Indicus Cattle.

Dr Richards practiced companion animal

medicine and surgery in Brisbane, Townsville and London before establishing Greencross Vets in Townsville in 1994. He became Managing Director of Greencross Ltd when it was established in 2007 and now oversees more than 60 practices in Queensland, NSW, Victoria and South Australia.

“Greencross Limited is principally engaged in the business of providing veterinary services,” says Dr Richards from his Woolloongabba HQ. “Our services include

Greencross FEATUREGreencross FEATURE

Greencross is expanding its network of quality veterinary practices. By Ian Armitage.


preventative medicine programmes, surgical procedures,

radiology and ultrasonography, in-

house laboratory testing, dentistry, puppy preschool and behavioural advice, weight loss programmes, grooming and microchip identification.

“We have expanded rapidly since 2007 and, for the year ending June 2011, revenue was A$61.1 million, up 23 percent, from the previous year.”

According to Dr Richards, Greencross started life when he bought Currajong

thoughtp A w s F o R

34

Greencross FEATURE

veterinary hospital in 1994.He has since led the company to

historic highs and a number of firsts: Along with three other

like-minded veterinary colleagues, he established

Greencross Ltd as the first veterinary practice to list

on the Australian Stock Exchange in an initial public offering.

“So far as we know we were the first,” he says.

“Today, we continue

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growing through the acquisition and integration of new

practices around the country. We are focused

on consolidating the fragmented veterinary services industry in Australia.”

There are a total of 67 practices -- after Greencross acquired

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in Victoria -- covering Brisbane, the Gold Coast,

North Queensland, Victoria, New South Wales and Adelaide.

It is a remarkable growth story. It has already acquired ten

practices in the first three months of FY2012.

“The target is to acquire at least A$12 million in revenue through

new acquisitions. This equates to approximately 12 practices acquired in the year. Acquisitions in the first

35

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Greencross FEATURE

three months included the Toowoomba and Wollongong joint venture in which we have a majority stake. On a year to date basis we’ve acquired ten clinics and this represents approximately A$9.5 million in revenue.”

Dr Richards says the veterinary industry is resilient and his company has seen positive revenue growth in the first three months of this year on a like-for-like basis.

“We are not totally bullet proof and have felt some impact from worldwide economic conditions with revenue growth softer than we would like. Despite this, with the excellent internal controls we have implemented over the last two years via our Area Managers and Practice Managers, we will deliver on our earnings expectation.”

Greencross listed in June 2007 with 31 practices. The company has a very clear strategic focus on buying good quality animal hospitals, which are well established in capital cities or major regional centres, with two to three vets in each location.

“We are a franchise-like operation but we own most of our practices outright,” says Dr Richards. “Do I expect the acquisition trend to continue? We will continue making disciplined acquisitions where they make sense, can be bought at the right price and where they meet our best care standards, but there is no rush as we’re a young company with a strong focus on organic development as well as acquisitive growth.

“When I started the first Greencross practice in Townsville, my simple philosophy was to offer the highest quality and personal service for my clients and their pets – this philosophy is entrenched in every clinic. We have developed an accreditation manual with clear guidelines of how we want clinics to behave, and they all must undergo regular audits to make sure they comply.

“I enjoy the challenge of being at the cutting edge of innovation in the veterinary industry. We are trying to take what has largely been a cottage industry and create


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greencross FEATURE

a business that really values clinical excellence and education, and makes the investment needed to offer the best available service.

“We built this company on the basis that we wanted to improve the way practices were managed. Greencross aims to be Australia’s leading veterinary group by providing pet owners access to a network of well equipped veterinary practices run by veterinary teams that offer exceptional client and patient care.

“We want to simply share our love and passion of animals through veterinary excellence,” Dr Richards concludes.

Pet owners continue to seek the best of care for their animals. enD

To learn more visit www.greencrossvet.com.au

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Australasia Business Outlook talks to Joe Vecchio, manager of Northern Iron and Brass Foundry, which employs 90 people and is a leading manufacturer of Ductile iron fittings and general castings for industry. He says a cast iron commitment to quality, safety and excellence has paid dividends. By Ian Armitage


Northern Iron and Brass Foundry NIBF) is an Iplex operation located just south of Cairns in Queensland.

It employs approximately 90 people and manufactures Ductile iron water fittings and general castings for industry.

“Northern Iron and Brass Foundry designs and manufactures products for water reticulation and wastewater applications, distributed by Iplex and Crevet, and the manufacture of castings for mining, agricultural, marine, sugar and general industries. Products are distributed throughout Australasia and South East Asia,” says manager Joe Vecchio.

The company was founded in 1932. Expansion into new markets has allowed the business the opportunity to extend its product range and capabilities, Vecchio says.

“We specialise in casting flake graphite irons, ductile irons, austempered ductile irons, abrasion resistant white irons, corrosion resistant irons, heat resistant iron bronze and aluminium and various grades of steel. Each of these materials can be cast to specific customer requirements and we do one-off items or high volume production runs.”

With up to five ton smelting capacity

and manufacturing facilities including fully equipped pattern and machine shops, NIBF is in a position to offer top quality products at a very competitive price. It has AS/NZS ISO 9001 Quality Management Systems certification, having been accredited since 1988.

All personnel are trained on all processes affecting quality.

“It continues to be tough market,” says Vecchio. “ The water infrastructure side of the business is in a very competitive market. This continually puts pressure on our manufacturing . That’s all I can really tell you about the first quarter of FY2012. Safety wise, we are on target – we have not had any major incidents.”

He admits competition in water reticulation and wastewater is strong, particularly in terms of both local and imported products.

“We have several competitors that manufacture locally and import, and we have had to diversify locally into more castings that are linked to the mining and general engineering. That is the area of our business that is strong. Actually last year we had one of our best years in that side of the business.


NBIF FEATURE

c a s t i r o N c o m m i t m e n t p a y s o f f a t N I B F


NIBF FEATURE

“How do we compete with imported product? It is difficult to compete on price because of their lower costs. But we have had customers come back because our consistent quality, reliable supply and local presence making costs a secondary issue. I guess the lower volume products will stay in Australia and the higher volume products will continue to be imported.”.

Vecchio adds: “And it all depends on the Australia dollar as well – it is so strong at the moment that it makes it more attractive to import product in from overseas.”

However, there are opportunities. New mines are springing up all over Queensland – something not lost on Vecchio. He says that as continued volatility and turmoil continue to rip through the world’s share markets, it is worth remembering that Australia’s resources boom hasn’t gone anywhere; it is

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gathering pace by the day, which will have both good and bad ramifications for all of us.

“We see growth in the business long-term, certainly and we are going to target that. As the regional sector expands and grows, we want to grow with it and supply the mines products as they open.

“I guess we have got to get to the main miners and talk to their purchasing officers and basically get our name out there and market ourselves so they know we are available – a lot of the mines that are opening in Queensland are going to be right on our doorstep.”

“We pride ourselves on delivering on time, every time and making sure that the quality is of the highest standard.” he explains.

“We have a processes in place throughout the factory to ensure the integrity and quality of our

products. We also have a full time quality manager on site.”

Vecchio started as an apprentice at NIBF 22 years ago and has risen up through the ranks.

He is an industry veteran and there isn’t much he hasn’t seen.

His challenge now is finding the next generation.“That is a challenge,” he admits. “Sourcing staff,

unfortunately, is very tough, especially when the mines are paying so much more. We are actually putting on a couple of apprentices this year to try and alleviate that, so we have some kind of succession planning in the future.”

NIBF continues to focus on safety, investing significant time and resources in this area. The result is a significant improvement in safety performance with workplace injuries being

Through the collective effort of all employees

we have created a safer place to work -Joe Vecchio

NIBF FEATURE


To learn more visit www.nibf.com.au

NBIF FEATURE

considerably lower. “We have achieved much in the area

of safety management, but remains work to be done across all businesses with an ongoing focus on safety system implementation and compliance,” says Vecchio. “Through the collective effort of all employees we have created a safer place to work. Employees are actively involved in planning and carrying out safety improvement activities and we have focused our energies on evaluating and controlling risk activities in site operations, conducting safety audits and improving near miss reporting. We believe it is possible to achieve ZERO harm”

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A multi-skilling program for employees will continue to support further improvements in safety at NIBF, Vecchio says.

“The result of this outstanding effort at NIBF has been a huge reduction in lost time injuries.”

He says the secret to NIBF’s success is in part due to this safety focus.

It also has a lot to do with staff retention.“What is the secret to our success? I think it is being

able to retain staff. We’ve had low turnover and there is no substitute for experience really and that is where I think we do have the edge – having so many long-termers here with a high skill level.” END

Dimond is a supplier of roofing, cladding and rainwater solutions, including tiles, long run roofing and corrugate. Australasia Business Outlook learns more.By Ian Armitage

New Zealand’s


l A r g e s t m A n u f A c t u r e r O f s t e e l r O O f I n g

New Zealand’s Dimond is New Zealand’s largest manufacturer of steel roofing, cladding, structural and rainwater goods.

Business Development Manager Mike Klemick tells Australasia Business Outlook that the company produces an extensive range of products, which gives it the “ability to provide the product that is right for any customer”.

“We are, I would say, an industry leader in innovation, product development, technical backup and distribution excellence,” says Klemick.

Dimond was established 40 years ago and its team is comprised of around 160 dedicated staff spread throughout 10 sales centres – from Whangarei to Dunedin.

“The spread of outlets ensures that our products and support are readily available to serve the needs of our residential, commercial, rural and industrial clients alike,” says Klemick

Conditions in New Zealand have remained challenging this year, with continued low levels of activity in the residential and commercial construction sectors.

It is its product range, innovation, service, backup and distribution excellence that sets Dimond apart.

“It is tight out there in the market at the moment,” Klemick explains. “There seems to been a hangover from the global financial crisis in 2008 and the building industry has been slow to recover since then.

“It has looked like it would recover a few times but then it hasn’t quite got there.

In early 2009 Dimond launched a new logistics offering to New Zealand – with the aim of offering better services to clients.

“This is how we differentiate ourselves,” Klemick says. “Basically what we have done is move to a central point of distribution management, so we have one company that handles all of our distribution requirements.





Previously we had over 20 around the country, depending on what was happening. What we have done is work closely with Australian company DGL and a new fleet of trucks and trailers have since taken to New Zealand’s roads.”

Designed specifically to carry Dimond’s extensive range of products, these trucks are a NZ first, Klemick says. The unique ‘Cassette Deck’ design allows the top deck of the trailer to be removed and smaller components to be stored securely in the bottom section. The top can then be replaced and the larger items loaded.

This design not only reduces the possibility of damage to products during transit but also reduces loading times allowing goods to get to site faster.

“With this delivery system being used by sister company Stramit in Australia, Dimond has been able to see the benefits first hand,” Klemick adds. “What we have also done, in

addition to this, and this is very important, is invest in research and development and innovation. Why? Well, when sales tight, customers are struggling to find work, and margins are under pressure it is important to invest in such things. I truly believe that doing things better today than we did yesterday is the way forward in challenging times, and that means innovation in product, services, and processes.”

He says it is easy for most businesses in the building industry to put effort into immediate requirements to reduce costs


Tandarra EnginEEring

situated in auckland, nZ, Tandarra is a family owned and operated company that has been manufacturing rollformers, and the associated accessories for more than 30years. during this time we have built up an excellent reputation that has resulted in our products being manufactured and shipped to numerous countries around the world. Today, exports count for 90% of our business, however we have also had longstanding relationships with numerous operators here in nZ including dimond, with whom we have been supplying rollforming lines for more than 20 years. our most recent project with dimond, was for the manufacture and supply of the revolutionary dP955 commercial roofing profile that has been met with rave reviews in the nZ roofing market. The unique shape of the ribs on this profile made it a challenging profile to rollform, however those are just the type of situations where Tandarra produces their best results! We look forward to further developing our longstanding partnership with dimond, and working with them on any future revolutionary projects they embark on.

We are, I would say, an industry leader in innovation, product

development, technical backup and distribution.

From our 10,000sqm site in Auckland, we design and manufacture;

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and work harder at chasing sales, forgetting about the need for innovation.

“We have always been strong on innovation. In the last two years we have introduced a measure of differentiation; it gives us an edge when we are out there doing the selling. It is a new roofing product. The product is called DP955.”

DP955 is the latest innovation in roofing profiles. Designed not only to be stronger than traditional profiles but also more cost effective and faster to install. The new design provides stronger ribs to protect against buckling and a wide style pan to allow for safe foot placement. With a wider cover width of 955mm fewer DP955 sheets are required to be installed saving both time and money.

“The Dimond DP955 long run steel roofing profile was developed in response to roofing installers and architects wanting a roofing solution that was not easily damaged by foot traffic, whilst still offering good economy,” says Klemick. “For many years, there was a sense of inevitability that metal roofs on

NEW ZEALAND sTEEL

With a working relationship that spans over 30 years, Dimond are one of New Zealand steel’s most valued customers. over this period we have worked together to develop a variety of new products in the Building and construction sector, the majority of them for Roofing and cladding.

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industrial buildings would suffer damage. With the market more competitive, roofing spans being extended, contractors facing retentions due to damage, and leakage resulting from the damage, the time was right to find an innovative solution. DP955 has a unique rib shape that is a world-first

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At Thermakraft we continue to push the boundaries in developing and sourcing the best building materials so that we can meet your needs in a continuously evolving environment. Thermakraft's large and varied range of products are available through all leading hardware stores, building supplies, timber merchants and roll formers throughout New Zealand. We also export our products worldwide.

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for profiled metal roofing. The shape is much stronger than conventional metal roof profiles in NZ and Australia. Because of the strength in the rib, the profile was developed with fewer ribs but with superior resistance to buckling, and wider pans to facilitate foot traffic and save on fastening time.”

The DP955 has been received well by architects and installers who have experienced the difference.

“We also have things like the Dimond Affinity Cladding System and the Wide Cover Ridging. We are always looking to push the envelope, trying to uncover every opportunity and promote the strengths we have over those of the competitors.

“I think it is all about putting customers first. That to me is vital. Customers are the lifeblood of any business. If we listen to the needs of customers and deliver on them, then I think we will be successful in the future.”

In New Zealand, no material improvement in trading conditions is expected in the first half of the 2012 financial year, and the timing

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warehousing local distribution

contract fleet management

DGL (NZ)DGL (NZ) is proud to be a business partner of Dimond. DGL commenced operations in New Zealand in 2008, specifically to provide a level of personalised service in the area of Contract Fleet that had not been provided before in NZ. After many years of successfully providing Contract Fleet in Australia, DGL was confident the working model would provide it’s NZ customers with great operating synergies, cost savings and customer service. DGL prides itself on the standard of service it provides. DGL is committed to the provision of quality services in all our activities. Our modern equipment is supported by trained professional logistical personnel, allowing DGL to supply a high quality, innovative, safe and professional logistical service.

We seek to become an employer of choice, providing our employees with a safe and rewarding work environment. DGL is committed to providing quality customer service and logistical excellence in a safe and professional manner. That makes DGL your total logistics solution.

To learn more visit www.dimond.co.nz

of a sustained and meaningful recovery beyond that is uncertain.

The pace of reconstruction efforts in Canterbury is expected to accelerate in the second half of the 2012 financial year, however.

“Wherever the future lie, for us it is about making sure we uncover every opportunity and promote the strengths we have over those of the competitors,” concludes Klemick.

END

54

With nearly 100 years of history, the Forman Group has virtually unparalleled experience in the delivery of Insulation, ceiling tiles and interior wall systems

to the New Zealand building industry, as Australasia Business Outlook finds out.

By Jane McCallion

F A M I l y h O s p I t A l I t y ,

deliveryprofessional

Established in 1913 by George Forman as an insulation contractor to industry, the Forman Group now incorporates

Forman Insulation, Forman Building Systems, Forman Commercial Interiors and Forman Manufacturing.

The group remained a family owned business for 93 years, until it was acquired by Fletcher Building in 2006. However, it still maintains that ‘family flavour’, as Mike Budd, National Sales and Marketing - Forman Building Systems, says. “Approximately 30 percent of our employees have been here in excess of 15 years, which is incredible really in a marketplace where most people stay for up to three years and then leave. This month we celebrated the anniversary of someone who has been with us for 25 years. This commitment is really a key strength for us – we have unparalleled knowledge and experience in our workforce on which to build our business.”

All divisions are lead from its Mount Wellington Head Office in Auckland. Forman Insulation remains a contractor to industry bidding for and completing contracts for insulation and Passive Fire Protection serves New Zealand’s major power, oil and gas, dairy and commercial construction sectors. Forman Building Systems was added to the mix in the late 1960s when an opening was seen to import and distribute products from overseas manufacturers, where the Insulation Contracting Business had built strong relationships. “Our Auckland sales operation is based in Mount Wellington and five additional branches strategically placed in Hamilton, Rotorua Wellington, Christchurch and Dunedin are a significant provider of insulation, passive fire Protection, soundproofing, ceiling and interior wall systems to the New Zealand market,” adds Budd.





small businesses who appreciate the “Family feel” of Forman.”

As a supply and distribution company, the Forman Building Systems strategy for continuous improvement is focused around increasing value for both supplier partners and the customer in growing market segments. This is something that is mentioned in a fairly abstract way by some companies, but Forman Building Systems has a strategic plan in place, with identifiable goals. “One of the areas for customers that have been identified for improvement is ‘delivery on time, in full and to specification’, nothing new to the business world, however the challenges of today’s market have put a huge pressure on time lines and resources. Today, the company is trying to over communicate with

its customers and is placing a system into action that will send a message to let customers know that their order is packed and ready for delivery and give customers a specific time for delivery the next day. The following morning, when the truck leaves the depot, another message will be sent to let customers know that their delivery is on its way. This is just one example of our communication strategy and we are constantly looking for any opportunity where we can innovate.”

Recently, Forman Building Systems has been looking at ways of diversifying its business without moving away from its

Forman Commercial Interiors (formerly Pinex Fixing Service) was bought from Fletcher in 1991 and spearheaded the development of the Forman Interiors offer. It remains New Zealand’s largest specialist installer of suspended ceilings and has grown its offer to include specialist fit outs.

Budd describes Forman Building Systems as a “Family business that boxes above its weight”, with a strong focus on customer and supplier partnerships.

“The Forman reputation for exemplary service and provision of ‘building systems’ has made us a key player in the construction value chain,” he explains. “The Forman expertise is seen across and in many leading and innovative building projects in New Zealand. Like every business, the last few years have been tough, however, and the global financial crisis, the Christchurch quakes and subsequent recession have severely damaged the construction industry and the big projects have disappeared.”

To the credit of Forman and its partners, it maintained solid market performance by moving with the challenge and introducing both new and innovative systems that meet today’s market.

“Recently the size of the projects being awarded may have changed, but our main customer base is stable,” says Budd. “Over the past few years, we’ve picked up new customers each year; lately they have been

Over the past few years, we’ve picked up new customers each year; lately they have been small businesses who appreciate the “Family feel” of Forman.

core offer. “We have started to introduce adjacent products to what we already offer,” explains Budd. “A great example of this is LED lighting. When you think about being a ceiling and systems supplier to the commercial and industrial sector, while it may sound like an oxymoron, you have to think ‘how can we own a greater footprint of the ceiling?’ and the fact is that, in every forman building systems

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ceiling, there are lights. So that’s the direction we took.”

LED lighting, as a new technology that was just coming on to the market, was an ideal opportunity, he adds: “It’s a system that is tightly bound with our core ceiling offer, but which also hasn’t been totally capitalised on. The company is also now offering a solar system on some of its large-scale commercial projects, based on the same premise.”

Budd sees the future of the company as secure and believes that the size of the competition will decrease in the coming years. “It’s a tough market at the moment and we’re already seeing some of the other

supply and distribution companies in New Zealand starting to strain under the current market conditions”.

Forman is looking to grow its business substantially over the next five years, he adds. “Our method for doing this will be looking more and more at adjacent product categories and enhancing our customer offer. This is where we believe additional value can be made and where the national distribution offer delivered by Forman can add benefits to our suppliers and customers. We also believe that the market as a whole will have bounced back by 2016 so we are very optimistic about the future.”

END

60

Zalman Paris, general manager of Australian Construction Products Pty Limited (ACP), a market leader in the integrated

supply of safety barriers and associated roading products in Australia, talks to Australasia Business Outlook.

By Ian Armitage

s A f esavingK e e P I n g m O t O r I s t s

lives

ABO: Are you enjoying the challenge?ZP: Yes I am, every day brings a new

opportunity and its great to create solutions together with the team I work with.

ABO: What do you think you bring to the company and the role of general manager?

ZP: I believe I have the ability to see the big picture and bring people and processes together to produce a winning result

ABO: Tell us more about Fletcher’s

acquisition of ACP?ZP: Fletcher Building is New Zealand’s

biggest construction company and in line with its growth strategy of building a diverse building products business in new Australasia this was a good fit. It was also a business that we were familiar with having owned and managed CSP in New Zealand for more than 30 years. We had skills that complemented this business and could see good growth opportunities. It is a strong-standalone business that is well positioned.

ABO: What did the acquisition cost?ZP: A final price was not disclosed.

ABO: The acquisition complements Fletcher Building’s New Zealand roading business, CSP Pacific. Tell us more…

ZP: CSP and ACP share a lot of knowledge: we supply products to one another and have a good family relationship. Because we have common products across two geographies there are a lot of synergies and opportunities to work together. We also have similar Customers between the two countries.

ABO: Please tell me about ACP and your future goals?

ZP: Well, the company was started over nine years ago and while this was before my time as GM, the original owners are still

Australian Construction Products Pty Limited (ACP) manufactures and distributes barrier systems to the civil engineering, mining,

and building industries. It offers W and Thrie beam guardrails, energy absorbing terminals, non-proprietary terminal ends, wire rope barrier systems, and bridge transitions throughout Australia. The company was incorporated in 2000 and is based in Bankstown. On August 31 2010, ACP became part of Fletcher Building (Australia) Pty Ltd. Zalman Paris (ZP), managing director tells us more in this Q&A…

Australasia Business Outlook (ABO): Zalman, thanks for taking the time to talk with us. We understand you relocated to Sydney to head up ACP, following Fletcher’s acquisition of the company. Before we ask you to tell us more about that, what is your background in the industry?

ZP: I’ve been working for Fletcher Building for 10 years, first as the Marketing Manager at The Laminex Group in NZ, and later in an operations role as Business Unit Manager for CSP Pacific. When we purchased ACP I became the General Manager of ACP/CSP. So I have had over 10 years experience in industrial markets.

ABO: What brought you into the industry?ZP: I was excited to join the industry

because this is an exciting business with a world-wide network of suppliers and manufacturers that is very tight. We share a common bond of making peoples lives safer on the road. Also in addition to this the opportunity, when I started at CSP there was a great opportunity to turn the business around and enter into an exciting industry.

ABO: When did you join ACP?ZP: I joined ACP on September 1, 2010

and started with CSP back in 2004





ABO: How would you sum up the current state of the industry?

ZP: I think the market is stagnating right now; there is good business out there, but little growth year-on-year. Our business has certainly been hit by the global financial crisis, like other business around the world through Govt budget deficits. I think in Australia we are at a critical stage as the industry is looking to lift its game through manufacture and installation processes through better standards and more audited processes. And through this we will see an aggregation of manufacturers and installers this could be a major change. An example of this is happening in Queensland where installers are being pre qualified and manufactures are also qualified. This is a good lead in the industry and others are looking to follow.

working in the businesses. Through foresight and shear hard work we have been able to carve out a sustainable niche in this market. The business has grown significantly over that time. We are different from others in the market because we have innovative and new technology; essentially we have technology that works on tension as opposed to compression technology and this was an industry first. We own the technology in Australia and New Zealand, but we did not develop it. We have a strong partnership with our technology provider.

ABO: How do you think the business is performing? Has this been a good year?

ZP: The year has started with a bang, but it has been challenging all the same, while we have seen good growth in some markets, others have been quiet.

Hunter Galvanizing is proud to be the major provider of hot dip galvanizing services to ACP.

With our processing plant located at Tomago, and a depot in Seven Hills we are well equipped to service all industry sectors located within NSW.

Our expertise and service is utilised by many government departments, fabricators, manufacturers and builders with end uses ranging from structural steel for small home projects to major government infrastructure. From service equipment for food preperation to the mining industry.

We also service the general public offering hot dip galvanized coatings on all suitable items.

Visit our website for futher information.

Hunter GalvanizinG Pty ltdPhone: (02) 4964 9555 Fax: (02) 4964 9333Email: [email protected]

www.huntergalvanizing.com.au

one steelonesteel Wire Rope is an Australian Manufacturer of a premium quality galvanised road barrier rope that is used in Australian highway infrastructure.

We employ 110 people at our newcastle factory and have operated for 86 years.

our 19mm 3x7 HG1220 rope features: • Supplied to the Australian market for over 10 years with 100% product performance

• Meets the Australian / european standards

• Rope has 400g/ m2 of zinc to prevent long term corrosion even in coastal environments

• Rope is prestretched and stabilised to ensure tension on installation

• Made in Australia and creating jobs for Australians

ABO: Have you identified a clear market strategy, then? What is it?

ZP: Yes we do, but I cannot give our prize away! ABO: Okay, fair enough! How do you see

the industry developing?ZP: We think the industry will continue to

develop around strong standards with the public safety as the key consideration. This could mean proprietary guardrail systems like the Nu Guard 31 becoming more prominent. Also in the case of Australia, if they continue to mine the minerals they will also continue to build roads to link the mines to the port, so while State Govt spending may be tight around budgets and the like, Federal funding still exists.

For further information:www.onesteel.com/wireropeE: [email protected]: +61 2 4968 6555 / F: +61 2 4960 2097

OneSteel Wire rOpe is a world leading manufacturer of wire rope products.We specialise in producing road Barrier rope to AS3569 to meet our Australian road conditions.Long Life: • Wiregalvanisedto400gm/m2zinccoatingmass. ThisexceedstherequirementsofClassW15galvanisedwirecoatingtoAS/NZS4534.• Aresilientconstructioncomprising3strandswith7wires ineach.

Warranted Performance: • Aminimumrope breakingforceof165kN.• Theropeisprestretchedto78kNuntilthelengthhasstabilised. Thisistoensuretensiononinstallation.

ensured standards: • Testingisundertakenforeachropeproducedinthecompany’s NATAaccreditedtestlaboratory.• OurbusinesshasISO9001/2008accreditation.• TheropecomplieswiththerequirementsofAS3569.

suPPort: • AustralianmadeforAustralianroadswithlocalsalesandtechnicalbackup.• Factorybasedtestingandropeanalysesavailable.

These requirements are all essential for the fence to operate as designed over the many years it will be in service.

ABO: What is your vision for the company?

ZP: My Vision for ACP and CSP is to build a strong specification driven business and through its activities and products enriches or makes safer the lives of the motorist sand individuals that drive the highways and by ways. It may sound a bit cliché, however for most of the management team they get a lot of satisfaction out of making our built environment safer. We also want to make a return for our shareholders in line with our corporate goals.

Zalman thanks for answering our questions; we wish you well. END

To learn more visit www.acprod.com.au.


piped r e a m s

Iplex Pipelines, a division of Fletcher Building, supplies and distributes pipeline systems and manufactures pipelines from 15mm to 2000mm in diameter for services including plumbing, water supply, gas, sewerage, storm water, irrigation, telecommunications, and electricity. By Ian armitage


Iplex Pipelines is a leading manufacturer and supplier of plastic pipeline systems. Providing a diverse range of products and services, the company provides systems that enable “the delivery of world-class solutions to

the water infrastructure, irrigation, civil and construction sectors” and operates manufacturing and distribution businesses across all Australian states and New Zealand.

“We manufacture and supply pipelines systems from 15mm to 2000mm in diameter for a wide range of applications including water supply, sewerage, plumbing, gas, storm water, irrigation, telecommunications, electrical, mining and industrial,” says Kevin Kellow, general manager – Infrastructure, at Iplex Pipelines Australia Pty Ltd, who explains that, with a ‘can do’ attitude, Iplex is committed to identifying “the most efficient and effective ways to meet customer’s needs”.

Iplex Pipelines was founded in 1938 and is now one of the largest pipe and fittings manufacturing businesses in Australia.

According to Mr Kellow, it offers clients “more” value added services than its competitors through an underlying philosophy of genuinely working to support the growth of their businesses.

“I joined the business in 1997. Soon after it became part of the Crane Group, and ever since it has invested in capital programs to ensure we provide systems that enable the delivery of world-class solutions to customers predominantly in the water infrastructure, irrigation, civil, construction and now mining sectors. We have a diverse range of products and services and have worked on some of Australia’s largest water projects; thousands of kilometres of Iplex pipelines have been installed across Australia.”


pipe




New Zealand-based building group Fletcher Building recently acquired Crane Group. A new chapter for Iplex thus has begun.

“The Fletcher takeover has been a good move,” says Kellow. “They are a manufacturing-driven organisation and they have a lot of experience. They have a good balance sheet and they’re supporting us with capital for projects that pass ‘the acid test’. The real positive thing about Fletcher is that they don’t just look at the financial results. They look behind financial results, delve into strategies and understand their business. It has given us an opportunity to hone in our skills, refine our strategies and review our manufacturing footprints to take a whole-of-life approach on costing, all the way through to the customer from the raw material source.”

This has been a good year so far for Iplex Pipelines, which has secured A$180m in supply contracts for the Queensland coal seam gas market.

“We have been awarded a contract for the supply of polyethylene pipe to QGC Pty Limited for its Queensland Curtis Island LNG Project. This is a priority project of QGC, a British Gas Group business, to develop Queensland coal seam gas for Australian and international markets. The contract to supply pipe to the project has an initial value of around A$120 million. Deliveries are expected to start in December and will continue over two years, with a smaller three-year optional extension period,” says Kellow.

The QGC contract follows the award to Iplex Pipelines earlier this year of a contract to supply polyethylene (PE) pipe and fittings to Fluor Australia for the Santos

Gladstone LNG Upstream Project. The value of the Fluor contract now stands at over A$60 million.

“Obviously we are delighted to be working with QGC to supply this large scale project. Our tender team was involved for close

to a year to ensure that QGC’s exacting requirements were met. The award of these two major contracts positions us well for future demand over the life of the coal seam gas projects as further gas wells are drilled as part of the ongoing maintenance requirements.”

In order to supply the above contracts, Iplex Pipelines will be extending its footprint in southeast Queensland through the construction of a new manufacturing facility in the Toowoomba region, which is expected to be operational by mid 2012.

The new Toowoomba factory will enable Iplex to improve its overall delivery capability.

“We are confident that this ideally positions us to benefit from the growing coal seam gas market in Australia and in particular, in southeast Queensland,” says Kellow.

The boom in this growing market has offset falls in more traditional sectors, he adds.

“Australia has a bit of a two-speed economy at the moment. We haven’t had both feet in the fast lane by any means. Irrigation, civil, and plumbing have all been quieter than you would expect. That has been offset though by very, very strong activity in mining and that is where we effectively have picked up the extra business.

“The Toowoomba factory will further improve things by giving us a manufacturing position in an area we weren’t present previously, so it will strengthen our ability

There is a boom in the area that will

last probably 10 to 15 years.



supply other markets in the area because it will essentially improve our footprint.

“There is a boom in the area that will last probably 10 to 15 years.”

Iplex, says Kellow, is the leader in Queensland coal seam gas market. “We’ve achieved that position because we’ve been willing to take on projects and invest. The coal seam gas and mining markets are critical to our growth in the future. So what we will do there is make sure the footprint is right, the technology for producing the material is right and then there is also the technology associated with the improvement in material.

“Then the other big opportunity for Iplex is around the water shortage in Australia – it will be addressed again shortly. Effectively,

To learn more visit www.iplex.com.au.

there are a large number of water projects that still need to happen; because of the technical and engineering offer that we have got on that side of the business we will be well-placed to take advantage of those opportunities as they arise.”

Iplex is also involved in rebuilding Christchurch.

“Without doubt, participating in the Christchurch rebuild program will provide some interesting challenges, and we are thrilled to be playing a part in rebuilding the city.

“The resilient mining sector and probable infrastructure spending in terms of irrigation and water shortages, and of course the continuing Christchurch rebuild, mean we have a lot on our plate,” Kellow says. END

Since the end of World War II, Tasman Sinkware has been providing Australian made kitchen and laundry sinks to the Australian and international markets. But what sets them apart is not just the high quality of their products but also their passion for technology and innovation.By Jane McCallion


L e T T I n g q u A L I T y

ensure a waterproof seal is in place when the sink is installed into a bench top.”

The simple fact that over 90% of all its sinks are made in its own plant in Adelaide sets Tasman apart from most other sink manufacturers in Australia. “Our main competition comes from other well branded Australian building products and international appliance companies. However, since 2007, we have been the only domestic manufacturer in the country with all our competitors having outsourced supply to overseas manufacturers, particularly Asia. The challenge is to remain globally competitive, particularly with the strong $A and at the same time invest in technology and innovation” says Joe.

The automation of the plant’s production line was introduced to reduce costs and improve efficiency; however Joe acknowledges that choosing to keep the

Tasman Sinkware is Australia’s only high-volume production-line manufacturer of stainless steel sinks, which are sold under the

brand name Oliveri. As well as the Australian market, Oliveri sinks are also sold in New Zealand, the USA, Canada, Hong Kong, Singapore and the UK.

The company, which is headquartered in Adelaide, has many different ranges of sinks and tapware, for use in professional and domestic kitchens, as well as a line of laundry sinks. Originally, Tasman Sinkware was founded as a general domestic metal fabricator, before specialising in sinks. “Over the 60 years since our founding, we have built up an expertise in the production of metalware, first on a broad basis, then on sinks,” says Joe Bayer, General Manager. “The fact that we use metal, or more specifically stainless steel as the primary fabrication material, is why we have maintained a niche in the kitchen and laundry categories, rather than bathroom ceramic sinks.”

Tasman Sinkware pioneered the manufacturing process known as ‘deep drawing’ in Australia and remains the only large-scale sink manufacturer in the country using this technique. “In simple terms, the bowl of the sink is pressed out in a two step process,” explains Mr Bayer. “The flat sheet of steel is ‘deep drawn’ to well over half its depth, before being pressed to its full capacity. This method ensures a greater level of uniformity in the final thickness of the sink.”

The company has also implemented a high level of technology in its plant. From the point the sheet of stainless steel enters into the factory, its transformation is overseen by a wide range of automated processes. “We have been installing automation and robotics progressively over the years. Most recent is development is a new under-sink sealing robot, which applies a copolymer gasket to



Our products are finely polished and

finished by robots. This gives them a very fine

flute design, so that contact with any plates or trays is reduced to a

very small area of the flute,” says Bayer. “Thus

our sinks are virtually scratch free.




manufacturing process in Australia does mean that Oliveri sinks can be more expensive. Nevertheless, he believes that this strategy has allowed Tasman Sinkware to keep a closer eye on quality and innovation. “With these technological enhancements, we have been able to bring down costs and ensure consistency of quality. The majority of the processes that we have automated in our factory are still predominantly carried out by hand in the factories of Asia”

Indeed, the company is using this and it’s strong branding as a point of differentiation for customers. “We sell to both the trade

and to retailers and while we are appealing to them, we’re also trying to raise awareness of the Oliveri brand amongst consumers and what it stands for: That we are an Australian company producing high-quality stainless steel sinks designed for the Australia market.”

Tasman Sinkware also takes its environmental credentials seriously. “We are very aware of the role that we play in Australian society and the responsibilities that we have in terms of green initiatives,” explains Joe. “We have in place a full environmental plan and our primary focus is on waste reduction and energy usage. Ninety percent of the waste that we do produce goes to recycling. Last year we also renovated parts of our plant, installing energy reducing initiatives and increasing the amount of natural light that filters into the factory.”

In terms of future plans, Tasman Sinkware’s focus is set on innovation. “We have a

number of new products that we

Project Supply & Materials Management

At Atlas our goal is to be the fi rst choice of our clients, again and again. We value consistency, urgency and service; and believe that also means we can deliver bottom line value to your next project.

With extensive stocks of Carbon and Stainless Steel Pipes and Fittings and with a large geographic footprint, we have more stock locations, more branches to support your needs.

Call for your free consultation on 1300 METALS

Quality control

Sourcing expertise

Expediting

Flexibility

Technical knowledge

www.atlassteels.com.au

70 Years Experience

PEAKEPeake are proud to be associated with Tasman, helping them to produce a excellent Australian made product and look forward to continuing our association with them.

PrEcimAx PlAsTicsPrecimax Plastics Pty limited is a custom injection moulder based in south Australia.

Established in 1970 we have been producing plastic components for global customers in the Appliance, Electrical, Building and irrigation industries. We have well established relationships with our customers and with their long term support we have been able to maintain and grow our business.

Tasman sinkware are one such customer who we have been supply over the past 10 years with a steady growth of business. Privately owned, Precimax Plastics has been able to remain flexible and meet the changing requirements of our customers by investing in new equipment and maintaining a training of employees in our 5s and lean manufacturing programs.

Precimax Plastics currently has capacity in the 650 ton and 850 ton moulding machine range

The 650 and 850ton Nissie moulding machines with robotic automation are available for work to be placed in them at competitive rates. Our skilled employees would welcome the opportunities and challenges that you may have for them .

will be bringing to the market and within the next five years we will be looking to expand into new applications and concepts,” says Bayer. “A particularly exciting trend is that for al-fresco living and enhanced kitchen functionality, niche opportunities we see as natural extensions for the Oliveri brand. We are a growth business with bright prospects and I see that continuing as we interface our products with major building and lifestyle applications.” END

FOcus: Fletcher Building Group


On-Site Mechanical Maintenance & Service • Machinery Installation & Relocation• Experienced In Food & Beverage Engineering

• Platforms Stairs & Handrails To Australian Standards • Guillotine Setting & Grinding


Zealand i c o n

A

Winstone Wallboards is new Zealand’s sole manufacturer of gypsum wallboards, which it sells, together with associated drywall systems, products and services. its GiB® brand is a new Zealand icon.By ian Armitage

New

one of the industries most affected by the economic downturn,” says Thomas. “Large drops in the number of residential buildings have driven that.

“When the downturn started, we undertook a major review and we downsized by about 20 percent and we stopped expenditure in certain areas. We basically tightened our belts to keep those unnecessary costs down.

“We did also make sure that we kept on investing in the right areas of the business to make sure we still provided the level of service our customers had come to expect.”

The Department of Building and Housing says too few houses are currently being built to meet demand.

“Conditions in New Zealand have remained challenging with continued low levels of activity in the residential and commercial construction sectors,” Thomas says. “The number of new housing starts remains at historically low levels.”

The low level of house building could lead to a housing shortage, which could boost demand for new homes in 2012/2013. This would create more opportunities for building and construction workers.

“In terms of where we have a lot of work ahead, that would be Christchurch,” adds Thomas, who was at a conference in Adelaide when he received news the quake had struck on 22 February. “Our plant was damaged in that quake and the operation closed down as staff left work to check on their home situations. In general, during that time, we maintained our customer service levels.

“Of course, now, we are involved in the Rebuild programme, which will provide some interesting capability challenges. In preparing for this, a critical factor obviously is the level of activity that will be undertaken. We have used publicly available data about potential overall building levels, made assumptions about the rate of rebuild, including there will be sufficient building

Winstone Wallboards Ltd is New Zealand’s largest manufacturer and marketer of gypsum plasterboard,

drywall systems, associated products and services. The company has been operating for over 80 years and manufactures plasterboard systems under the long-established GIB® brand name, which extends to specialised products for noise, moisture, durability, fire and bracing requirements.

Around 75 percent of Winstone Wallboards’ products are used in the residential market, with the balance being used in commercial construction.

Its GIB® brand is a New Zealand icon and Winstone Wallboards has a proud heritage of being a New Zealand focused and New Zealand based company.

“We have facilities in Auckland, Wellington and Christchurch, and are part of the Building Products Division of Fletcher Building - a New Zealand based international company,” says David Thomas, general manager, who joined Fletcher Building in 1976 and took over the daily running of Winstone Wallboards in 2001. “Winstone Wallboards has long been a successful company and we have further consolidated its strong market position over the past decade. My 10 years as general manager have been challenging but enjoyable - with our success primarily due to a talented and hard working team.

“How is the business performing at present?” he adds. “I think the fundamental problem for us is the economic environment and my view is that we are doing as well as could reasonably be expected.”

New Zealand’s building and construction industry has been heavily affected by the 2008 financial crisis and subsequent economic downturn, with building construction dropping from a very high level to a record low.

“Building and construction has been





labour capacity, and concluded that annual volumes will be at about 75 percent of the NZ record levels of the middle of last decade.”

He says that, from a national perspective, Winstone Wallboards has more than sufficient capacity, but has decided to increase capacity in the Christchurch plant.

“This will be done during the 2011 Christmas shutdown period and will be up and running at the start of the 2012 calendar year; this will put us in a very strong position to service the market,” Thomas explains. “The pace of reconstruction efforts in Canterbury is expected to accelerate in 2012.


“In New Zealand, no material improvement in trading conditions is expected in the first half of the 2012 financial year, and the timing of a sustained and meaningful recovery beyond that is uncertain.”

“So then the challenge is making sure we stand out,” he adds. “I think it is fair to say we do that through our service. We have also tried, despite the downturn, to lift our service levels and be better than what we were before.

“Of course, we will also continue to innovate, where possible. What we will



always be looking for is new uses for drywall product, which will be difficult, but you never know – we might be able to develop a flooring product that could use gypsum or something like that. That’s one area and we will look at others.

“I don’t think there is a lot we can do to increase the size of the plasterboard market in its traditional uses. We have to find other areas where we can use our knowledge of how buildings work and are put together in New Zealand to maybe find ways of re-engineering some products and services that are currently available,” Thomas concludes.

END

Succeeding in the reSidential market iSn’t child’S play…

that’S why we’re proud to be a partner of

winStone wallboardS.Like Rondo, Winstone Wallboards simply won’t

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as their supplier of leading products like our

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To learn more visit www.www.gib.co.nz.

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Documents

Australasia Outlook Issue 2