Engineering injection game-changer for Southland

The Government's investment in 10 engineering firms in Southland is a "game changer" for the sector and will give momentum to the region, one of the company’s director says.

Gareth Dykes is from FI Innovations, one of 10 industrial beneficiaries of the $2.13million boost for Southland's engineering and manufacturing sector.

Regional Economic Development Minister Shane Jones was in Invercargill yesterday to announce the the latest round of funding, which also includes support of $1.5million for Southland Youth Futures and the investment of $500,000 in CH4 Global company to see if it can commercially manufacture New Zealand's red seaweed into emission-reducing food supplements for farm animals.

Mr Jones said the funding enhances the work of the Southland and Otago Engineering
Collective (Sorec) which is working on ways on which the sector can collaborate.

He said the money would assist them with purchasing equipment that will lift productivity and create 57 new jobs in the sector.

"We put genuine ... [investment] into businesses that want to keep the traditions of engineering and manufacturing alive in this part of New Zealand."

So far the PGF has invested $42.21million in a range of projects in Southland, he said.

“I’m confident today’s announcements will help further diversify Southland’s economic base and create new opportunities and new jobs” .

Mr Dykes said the engineering sector was "quite creative so the funding would work as a boost to keep them pursuing innovation."

CH4 Global chief financial officer Andrew Smith also welcomed the funding and said he believed it was a "game-changer" for the company.

He said the company would test whether Southland could become the first supplier and global leader in the cultivation of this seaweed species which has a known key ingredient, bromoform, that can reduce methane gas emission in cows and sheep by up to 95%.

CH4 Global director Nick Gerritsen said they were focused on making it easy and cost-effective for farmers to adopt a simple and viable approach to climate change.

"Our intention is to put money back into the farmer’s pocket by producing a highly nutritious supplement so the cows need less feed overall and the resulting dairy or meat products can command a premium by being carbon-neutral. Plus, the farmer avoids any penalties for exceeding carbon emissions."

Labour Invercargill list MP Liz Craig said she was delighted “not only because the Provincial Growth Fund will be investing a further $4million into the Southland economy, but also because of the synergies between the projects funded.”.

Mayor Sir Tim Shadbolt said the announcement gave the region a "moral boost".

Sir Tim said he "put a lot of faith" in aquaculture sector.

"We got the biggest coastline of any other region in New Zealand and we know there is an abundance of wealth there."

Where the money's going 

JK’s Engineering: $500,000 to buy a Computerised Numerical Control (CNC) Beamline Machine.
FI Innovations: $370,000 towards equipment that will allow it to buy a large-scale 3-D printer.
Yunca: $250,000 to buy new equipment and create an extra 16 jobs.
Nulook Windows and Doors: $140,000 for equipment.
Bluff Engineering and Welding: $77,500 for equipment to lift productivity.
Zenitec: $130,000 for equipment.
Stabicraft: $225,000 to accelerate productivity, bring more processes in-house and create 12 new jobs.
Sheet Metalcraft: $132,500 to buy equipment and increase productivity.
EIS: $55,000 that will create eight more jobs.
Southern Steel Windows Ltd: $250,000 towards specific pieces of equipment that will increase productivity and create three new jobs.