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Skellerup plans $30M plant, replacing quake-damaged facility

Published: Wed 18 Jun 2014 09:28 AM
Skellerup to build $30 million plant, replacing quake-damaged facility
By Jonathan Underhill
June 18 (BusinessDesk) - Skellerup Holdings, the rubber goods and dairy equipment manufacturer, is to build a $30 million factory at the Wigram Business Park in Christchurch developed by Ngai Tahu Property, to replace its earthquake-damaged facility in the suburb of Woolston.
Skellerup awarded the designs and build contract to Calder Stewart Industries, the Auckland-based company said in a statement. Veteran businessman Ron Carter will oversee the project for Skellerup, it said.
Part of the cost of the dairy rubberware development and manufacturing facility will be covered by the insurance settlement for the Woolston site, which was damaged in the 2010 and 2011 quakes.
Construction of the new 18,900 square metre facility is expected to be complete by the end of 2015 and about 200 staff will then be transitioned from the Woolston site, the company said. Skellerup acquired the 3.4 hectare property within Ngai Tahu Property's Wigram development in May last year.
In March this year, the company said the total value of its insurance claim after deductibles was $32.3 million and included costs related to the move to the Wigram site.
The shares last traded at $1.75 and have gained about 32 percent in the past 12 months, almost twice the gain of the NZX 50 Index.
(BusinessDesk)

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