Business News

ExportNZ says New Zealand’s educational institutions offer a valuable export commodity with great potential for growth. The news that there is to be a dedicated Government agency focussed on maximising its potential is a welcome economic growth initiative. ExportNZ executive director, Catherine Beard says a sector based approach through increased collaboration seems sensible. “As a small country, collaboration is key to leveraging our position and boosting our presence in a highly competitive global marketplace. We’re seeing the need for this approach across many sectors where small Kiwi companies are otherwise falling under the radar. “We look forward to working with the new Crown Agency.”

Clean energy technology company LanzaTech is partnering with LCY Chemical Corporation (LCY), one the world’s leading chemical companies, to identify key bio-based chemicals to produce for global fuels and chemicals markets. Dr Jennifer Holmgren, LanzaTech’s chief executive, says the implication from the heads of agreement is LanzaTech’s technology will be able to deliver economic benefit through the entire value chain from its feedstock suppliers to distributors. LCY, a billion dollar enterprise, is fully integrated and operates in Taiwan, China, Japan, Qatar and the United States. With potential global revenue for bio-based chemicals and plastics forecast at US$15billion (Û11.4bn) by 2020, LanzaTech is fast tracking the commercialization of its chemical production process so it can integrate in to the distribution chain. “Bio-based chemicals are currently one per cent of global chemicals production, but that is expected to increase to nine per cent during the next 10 years,” Dr Holmgren says. “LanzaTech and LCY will produce key bio-based chemicals, creating new products and revenue streams for both companies.” Mr Bowei Lee, CEO and Chairman of LCY, says it is a proudly strategic intellection for LCY to pursue advance technology. “The benefits may expand far beyond the impact on company revenue in this case,” Mr Lee says. “We value this opportunity as the essential step to a future with unlimited potential as we again fulfill our promise of effectuating green technology and being a resident of global village.” Mr Lee says LCY plans to investigate alternative bio-C2 to C5 feedstock as raw materials, replacing petroleum oil for LCY’s current portfolio of products such as TPE, PP, solvents, and methanol derivatives. LCY is also looking to further developments in bio green products including bio-plastics and bio-fuels. LCY will fund the construction of production plants in exchange for access to LanzaTechÕs technology. LanzaTech’s proprietary gas […]

Owen Glenn said what we already know in today’s NZ Herald. NZ doesn’t have the programs in place for economic growth and believes the National government is playing with the economy. He also challenged Don Brash to show how this country is going to catch Australia by 2050. I’d like to know myself, actually. Last week Jeff Kennett was in Auckland and suggested that Super City Auckland reduce the amount of development ideas it has and  concentrate on just a few. What these prominent business  people are saying is we are not realistic enough to bring about the economic growth we need to prosper. Jeff Kennett even suggested an AFL team based in Auckland. As much as this idea can upset die-hard rugby loving kiwis, he believes that the business of an AFL team will bring benefits -a company on a sports field with financial backing, professional marketing and promotion and growth. Sounds good to me! -Doug Green

We are pleased to invite you to the 2011 Metals New Zealand Industry Conference to be held on the 14th and 15th of April at the Duxton Hotel in Wellington. This event comes as a result of the fantastic success of four previous Metals Industry Conferences with each event attended by well over 300 key people from the industry, government and academia. However, for the first time this event is organised by the newly-formed Metals New Zealand society and the conference is used to officially launch this new pan-industry body. If there is one commonly agreed theme in respect to securing New Zealand’s prosperity then this must be that New Zealand needs to increase its productivity and sped of innovation. The conference organisers have picked up this theme with the intention to put our industry in the driver seat. No doubt this will be an immense challenge considering that the recession is constraining our industry financially in its ability to invest and innovate. However, if we wish to seriously achieve the government target of catching up with Australia’s GDP per capita growth by 2025 and, from a companyÕs perspective, to make profits, we need not just adjust the way we do things we do need to transform dramatically. This conference, with its theme ‘Driving Productivity and Innovation’, is about informing on the big picture from a national perspective but most of all it is about giving our industry leaders perspectives and solutions to progress and achieve measurable productivity gains.  It also is about offering the opportunity to network within you sector group or the entire metals engineering industry sector.ÊMembers of Metals New Zealand such as the Heavy Engineering Research Association (HERA), Steel Construction NZ (SCNZ), NZ Stainless Steel Development Association (NZSSDA), National Association of Steel Framed Housing (NASH), Light Alloys […]

A ‘Roll of Honour’ graduate booklet has been established in recognition of the time, effort, and dedication learners put into completing their industry-based training and their employers for providing support throughout their learning journey. Industry-based training achievements are often overlooked when stacked up next to their university graduate peers, despite the comparable commitment learners must make to successfully complete their studies.   “Gaining an industry-based qualification requires dedication and focus which deserves recognition,” says Competenz chief executive, John Blakey.   “A qualification represents a lot of work dedication and determination on the part of the learner; and support, encouragement and skills-sharing on the part of the employer.” Among an encouraging 883 graduates are 178 workers from the wider manufacturing industry who completed Level 4 national certificates in competitive manufacturing (100) and business first line management (78). Along with their peers who completed apprenticeships in the mechanical engineering sector, and trainees from the food and beverage manufacturing sector, these graduates have proven they have the knowledge, skills, and leadership capabilities that are essential for the continued growth of the manufacturing sector. Industry training organisation, Competenz, created and distributed the Roll of Honour to celebrate all graduates who completed Level 4 or higher qualifications within their industry coverage in 2010. The Roll of Honour will be published within the first quarter every year to celebrate the previous yearÕs graduates. The Guild – Competenz Alumni Group Along with the Roll of Honour, Competenz has launched an alumni group ‘The Guild’ to create a community of industry-based training graduates. The group aims keep graduates ‘in the loop’ with further training options to extend on their recently completed studies, and to help them Ôlink inÕ with their industry peers via dedicated e-newsletters and, later this year, alumni events to be held in two major centres. The inaugural […]

The 7th Australia New Zealand Leadership Forum which opens in Auckland on Friday 8 April will be a further opportunity for business to help shape the economic agenda between the two countries, says BusinessNZ. “Australia is our single most important economic partner and this week’s Leadership Forum comes at a time when both countries need to accelerate the progress towards the goal of a single economic market if the trans-Tasman economy is to recover and prosper,” said BusinessNZ Chief Executive Phil O’Reilly. The Leadership Forum will bring together leaders from government, business and the community to exchange views and ideas on significant political and economic issues in the relationship. The Forum will be the last to be co-chaired on the New Zealand side by John Allen, former Chief Executive of New Zealand Post. The well-known company director and leader of Sydney’s Olympic bid, Rod McGeoch AM, is Co-Chair on the Australian side. “The theme of this year’s Forum  -‘ANZLF- a new generation’ – reflects both the coming of age of this event, now an established feature of the relationship, and the nature of the work in which we are now engaged to deepen trans-Tasman integration,” said John Allen, now Secretary of the Ministry of Foreign Affairs and Trade. “The discussion at this week’s event will focus on the relationship between the two countries as well as how we can work together to take on the rest of the world. Topics to be covered include the regional context for the relationship, responses to natural disasters, changing popular perceptions of each other, maximising human capital, progress in the single market, leveraging opportunities from major events, creating opportunities from climate change and fostering trans-Tasman innovation and creativity”, said Mr Allen. “At the conclusion of the Forum I will hand over the role as […]

Many businesses buying power at spot prices have been caught out over the past two week-ends as power prices spiked as high as $19,000 Mwh, the Employers & Manufacturers Association says. “One smaller business reported to us that Saturday, March 26th cost them an unforeseen extra $7000 for electricity,” said Alasdair Thompson, EMA’s chief executive. “Another reported it cost them an unbudgeted $180,000. “Several power retailers have reported the spot price peaks cost them tens of millions; $25 million alone for Mighty River Power. “So business wants to know who made all the money – at least $50 million in all – out of this? “We might expect prices to rise by perhaps 65%, or even 3 or 4 times in such an event, but never by 200 times! “The question to be answered is, did Genesis use its market power at the time of the outage when other generators power supply was constrained, to manipulate a massive price increase? “Second, can we expect this to become the norm when issues like this occur in the future, and will all generators in future follow Genesis’ lead? “If so, then what will the cost of hedging for all businesses buying power on the spot market rise to? “Business needs answers to these questions from the Electricity Authority; it will be a real test for it. “But we don’t even know if the Authority has any power to retrospectively do anything about this. “So it’s a political issue until such anomalies are resolved, though it wonÕt help those so massively stung by the enormous prices they retrospectively found they had incurred. “The government itself should therefore take retrospective action, which though something business never likes, may well be warranted on this occasion. “It must be noted that Transpower signaled the constraint in the […]

The employment law changes starting from tomorrow will lift business confidence by encouraging the hiring of new staff, says David Lowe, Employment Services Manager for the Employers & Manufacturers Association. “Personal grievances and holidays’ laws have consistently been the two biggest reasons employers say they put off hiring, and the Government has addressed both,” Mr Lowe said. “Employers are pleased the 90 day trial employment periods will now apply to all organisations. “That’s a victory for commonsense as the evidence is clear that under trial periods employers have hired sooner than they otherwise would have, and the smaller employers to whom it previously applied have used the provision responsibly. “We note the Australian union movement recommended their government adopt a 90 day trial employment period. “Businesses will find the law changes encouraging as they give some flexibility to get on and run their businesses, rather than get tangled up in red tape. “Successful businesses are important for everyone, and they need to be encouraged and valued. “For years employees have been asking their employers to cash up some of their annual leave, and at long last the law makes it possible for businesses to agree to an employeeÕs request to do this. “The date an employee can first ask to cash up annual leave starts on the anniversary date they started work, but this date is different for each employee and some will have to wait until 2012 before being able to make their first request. “The law change to union access became necessary because of a few union officials who behaved badly or tried to disrupt a business, but employers are still bound by a reasonableness test.Ê Examples of the sort of behavior that needed curbing follows.”

An Auckland-based fragile freight and furniture moving business behind a website to promote industry debate about a move to gross weights, says it believes there will be an industry backlash if the change goes ahead. A One Movers manager, Tony Milham, says his company will be stung badly by the move, which goes against the user pays principles of road user charges (RUC) and will likely worsen road damage, congestion and safety. He has made a submission opposing these provisions in the Bill. The change is contained in the Road User Charges Bill being considered by Parliament’s Transport and Industrial Relations Select Committee. It proposes moving from nominated weights to gross weights (along with distance) as the basis for paying RUC. Mr Milham says he senses disquiet in the industry and says the government risks a backlash akin to that which hurt the former Labour government when it raised RUC charges. He said that submissions on the Bill generally opposed the change. Feedback on the website he has established www.gwwtf.org.nz showed the industry was wary of the move.  The website includes a calculator to help truckies work out what they may pay under a gross weights regime compared to what they pay now. “I can’t understand why an otherwise progressive Bill seeks to take us backwards,” he says. Mr Milham says the worst feature of the proposed change is a lack of consultation and its undemocratic foundation. “How can the government pass a law to strike a tax without telling us what that tax will be? Parliament should not let this happen,” he says. “This is one of the biggest tax changes in New Zealand in recent times  and you can’t even tell for sure what you’ll pay under the new system,”he said. ‘The industry hasn’t been consulted on a […]

The Buy NZ Made campaign, part of BusinessNZ, has today launched a new campaign called Love Christchurch Made to help Canterbury manufacturers promote their products. Free to all Canterbury based businesses to join, the campaign includes an online business directory at www.lovechristchurchmade.org.nz that allows firms to advertise their contact details, web address and products. There are specially designed red and black Love Christchurch Made stickers and swing tags, available at cost to all Canterbury firms taking part in the campaign. Catherine Beard, BusinessNZ Executive Director Manufacturing, says the campaign will help raise awareness that Christchurch manufacturers are in business and pumping out their goods for sale. “This is a great way for New Zealanders and international consumers to show their support for Christchurch manufacturers. It also sends a clear message that these firms are open for business after February’s earthquake.” Trina Snow, Manager for Buy NZ Made said the marketing collateral for the campaign can also be used by businesses in the service sector. “The distinctive black and red Love Christchurch Made labelling means people can be sure they are directly giving custom to firms from the earthquake-stricken region. The best way to help them move forward and rebuild the Christchurch economy is to give them as much business as possible.”