The news is welcome in Dunedin, which is still coming to terms with the news of Cadbury Confectionery closing early next year with the loss of about 350 jobs.
The Fairfield business, which was started in Lawrence in 1987 by Jim Robertson, is planning to offer its 4000sq m factory and warehouse for sale as a managed investment scheme and investors will be invited to own a proportionate interest.
The expected $5 millon raised from the sale would give the business the opportunity to invest in expansion, meaning larger manufacturing capability and an expected doubling of jobs.
General manager Greg Jolly said current staff numbers were about 170 and although he planned for the company to be a lot smarter, and with better productivity, it was feasible job numbers would grow to 400.
"I do remember thinking we would be lucky to get to over a hundred."
Tuapeka Gold moved to Dunedin three years ago this month and growth had been strong since then, he said in an interview.
Since moving, sales turnover grew by 34% on the last year at Lawrence, followed by 38% growth and 51% last year.
The company was expanding into Australia, using the expertise it had gained by servicing its New Zealand clients.The company had moved on from branded pens into a wide variety of goods, including umbrellas and bags.
"Our philosophy is bringing China to Australasia. We work with our distributors so they have a five- to seven-work-day turnaround, depending on whether it is New Zealand or Australia.
"They don’t have to worry about a 12-week lead time and we continue working with our distributors on what works best."
Clients wanted stock quickly, the full colour range and an interactive website to manage their business and that was what Tuapeka delivered.
It was now New Zealand’s largest supplier of wholesale promotional products, he said.The decision to sell the factory and warehouse came after three years of rapid growth. Something had to be done to support future expansion.
Otago Chamber of Commerce chief executive Dougal McGowan said from Shanghai the announcement was "great news". The decision to expand was good for the local economy and had the prospect of more employment in the city.
"This is an example of manufacturing going well from Dunedin. They focus on quality products and effective supply chains to meet. Tuapeka had owned the Fairfield site since moving from Lawrence and the business had more than tripled in that time.
"We’re forecasting similar growth in the next four years and we needed to look at ways to fund more machines, manufacturing and jobs."
The success was down to the energy and drive of the partners, Mr Robertson and Brad Houghton, who had completely different personalities but worked together well, Mr Jolly said.
The staff were also an integral part of the company’s growth. Many of the young people employed in the design section had qualifications in art and design but had been working in retail or hospitality because jobs in their chosen field were hard to come by.
It made sense to own the building when Tuapeka first moved to Fairfield so it could be adapted to the company’s needs, Mr Jolly said.
However, owning tied up capital that could be used the for growth. Offering the property to investors and leasing it back freed capital up and gave the company options.
The company aimed to quadruple its growth over the next four years and planned to expand the manufacturing into the warehouse space on-site. More equipment, innovation and using shift patterns would align the strategy, he said.
People often asked why Tuapeka was still based in Dunedin and had not moved to a larger centre.
Mr Jolly said he was a "Dunedin boy". Mr Robertson was from Lawrence but a loyal Otago man and Mr Houghton had become disillusioned with Auckland several years ago and was pleased to be living in Dunedin.
"Our supply chain is so efficient we can provide product in five days. But the biggest reason for being here is Dunedin. It is simply a great place to live and work."
