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Kiwi garage start up one of largest dual market export operations

Set for $115m expansion in China A Kiwi company that began as a West Auckland garage start-up nearly three decades ago has grown into one of NZ’s largest dual-market export operations, and is set for further expansion with the construction of a new $115m biotech manufacturing facility in China underway. Manukau-based Alpha Group is a vertically integrated nutraceutical exporter at the international forefront of fermentation technologies. The company produces patented fungal and plant-based bioactives, with integrated research and manufacturing operations across New Zealand and China. The new 60,000m² facility in Ningde will support New Zealand’s fermentation export capabilities by integrating advanced R&D, testing, treatment and production. Once complete, it is expected to generate more than NZ$225 million in annual revenue and expand Alpha’s transnational footprint to over 119 hectares. To date, the company has invested over NZ$830 million in developing this global infrastructure. Alpha Group was founded in New Lynn in 1998 by Professor Yihuai Gao, a globally recognised researcher in medicinal fungi and honorary fellow at Massey University’s Riddet Institute. Mike Arand, Alpha Group senior business advisor, says the new facility is the physical realisation of Alpha’s long-term dual-market strategy, which combines New Zealand’s scientific and natural resource strengths with China’s demand, scale and infrastructure. He says the development bridges lab-to-market pathways, turning New Zealand-led research into commercial outcomes that drive export growth and reinvestment into local R&D. “This facility unlocks exponential growth potential for New Zealand’s fermentation sector. “By integrating R&D and processing in one hub close to our largest export market, we can boost output, reduce lead times and increase demand for Kiwi-derived ingredients. “It’s about creating a transnational innovation ecosystem where New Zealand science drives offshore commercial outcomes, which then feed back into local jobs, R&D and raw material demand,” he says. Alpha Group has already […]

Carbon claims: Get the language right and the facts straight

-thinkstep-anz If you’re sharing your organisation’s carbon footprint, net zero goals or carbon neutral status, it’s vital to communicate clearly and accurately. Getting it wrong could damage your reputation, open you up to legal risk or erode trust with your customers and stakeholders. Strong carbon claims can show leadership, but only if they’re backed by real action and solid evidence. The good news is: once you understand the terms, it’s much easier to get them right. Why clarity matters more than ever In today’s fast-moving policy and regulatory environment, environmental claims are under increasing scrutiny. We’ve seen businesses taken to court for inaccurate or unsubstantiated claims. To stay on the right side of the law – and the right side of your customers – you need to be cautious and well-informed. This article explains the key carbon terms and offers practical advice to help manufacturers communicate responsibly. What the key carbon terms mean Carbon neutral Your business, product or service has measured its emissions, taken action to reduce them and used offsets to balance what’s left. You need: a defined scope (e.g. your head office or a specific product line), a timeframe, a verified carbon footprint and a credible reduction plan. Use offsets only for emissions you genuinely can’t avoid, after reduction efforts. Standard to follow: ISO 14068. Example: A manufacturer measures and verifies its emissions for 2023, reduces what it can and offsets the rest using certified carbon credits. It communicates: “Carbon neutral for our Christchurch site in 2023, certified to ISO 14068.” Net carbon zero This means deep emissions cuts first, and offsets only for what’s unavoidable. It’s typically applied to entire organisations. You need: to follow the Science Based Targets initiative (SBTi) approach – prioritising genuine emissions reductions. Offsetting alone is not enough. You must reduce most […]

Building the Foundation: Preparing Your Manufacturing Business for AI Success

-Adam Sharman, CEO LMAC Group APAC The manufacturing sector stands at the precipice of an AI revolution that promises to transform everything from production efficiency to supply chain management. Yet for many business leaders, the question isn’t whether to adopt AI, but how to prepare their organisations to extract maximum value from these powerful technologies. The answer lies not in the sophistication of the AI itself, but in the quality of the foundation upon which it’s built. The Data Foundation Imperative Before any AI system can deliver meaningful insights, your manufacturing operation must first establish a robust data infrastructure. This begins with conducting a comprehensive audit of your existing data landscape. Map out where data is generated across your operation—from sensor readings on the factory floor to inventory management systems, quality control metrics, and customer order patterns. Many manufacturers discover they’re sitting on vast amounts of valuable data that remains siloed across different departments and systems. The key is achieving data integration and standardisation. Legacy systems often speak different languages, storing similar information in incompatible formats. A machine’s operational data might be recorded in one system while maintenance records exist in another, making it impossible for AI to identify patterns between equipment performance and maintenance needs. Investing in data integration platforms that can unify these disparate sources creates the coherent dataset that AI algorithms require to function effectively. Data quality represents another critical pillar. AI systems amplify the characteristics of the data they’re trained on—if your data contains errors, inconsistencies, or gaps, your AI will perpetuate and magnify these problems. Implement rigorous data validation processes, establish clear data governance protocols, and create systems for continuous data quality monitoring. This might involve automated checks for outliers, regular audits of data entry processes, and establishing clear accountability for data accuracy across teams. […]

Leadership From the Top

How Government Must Reflect What It Asks of Business Stop Pointing Fingers, Start Holding Mirrors If you’re a business leader in New Zealand, you’ve likely heard it all before: “Lift your productivity, innovate faster, create higher-wage jobs, be more sustainable, upskill your workforce. David Altena is Head of Growth & Partnerships at SmartSpace.ai & Co-Founder of The Better SMB Podcast. david@altena.solutions Rob Bull is Director & Principal Consultant at Plexus Consultant & Co-Founder & Host of The Better SMB Podcast. rob@nzla.nz These are worthy goals. But it’s time we asked a tough question in return: Are our public institutions holding themselves to the same standard they expect from us? Leadership isn’t about titles, it’s about accountability, starting at the top. If the private sector is expected to do the hard work of transformation, then the public sector must model what good leadership looks like: clarity, consistency and execution. The Double Standard Holding Us Back Manufacturers are told to build systems, measure progress and lead their teams intentionally. We’re expected to set targets, empower people and stay the course through uncertainty. Yet across public policy, we too often see the opposite: Strategies without metrics Funding without follow-through Agencies working in silos Change driven by election cycles, not national interest It’s no wonder productivity has flatlined for decades. The truth is, we don’t just have a business performance problem, we have a systems leadership problem. Businesses are being challenged to grow up, digitise and collaborate. Isn’t it time government did the same? The Easy Button Problem In the private sector, lifting performance means innovating delivery models, rethinking processes and doing more with less. If we make poor decisions, we lose customers. If we waste resources, we destroy value. But in government, too often the first response is to reach for what […]

Blending artistry with automation for strategic advantage

-Scott Adams, Argon & Co Manufacturing companies in New Zealand are most often owned, managed, and operated by engineers and therefore they often lack artistry, passion, and flair. I readily, and happily, accept there are exceptions to this statement, but for every exception there are 10 more that focus on precision, performance, and cost. Is this a problem? Sometimes it is, because we miss the opportunity of producing something wonderful rather than something utilitarian, but also because it limits opportunity and commercial outcomes. If we build a low-cost focused, and therefore often automated, manufacturing capability without creativity then it is very difficult to be innovative with product design and it therefore limits our ability to adapt to a changing market or to create opportunity in a new market. I frequently hear that the only reason a product has changed is because the client required it. This is satisfactory for many of our smaller national or regionally focused manufacturing companies as there are significant obstacles to change: there is not enough space, inflexible machinery, or people are scared to try something different. But if we were to examine a list of the NZ manufacturing companies that have been successful globally and nationally, it would be full of companies that have blended artistry with automation, admittedly in industry sectors where that combination is encouraged, which is generally high-value niche products. Another smaller list of successful companies will show they have primarily focused on the artistry. However, we have very few low-cost automation manufacturing companies producing volume that have been successful, primarily because there are too many barriers to be globally, let alone nationally, successful due to our small population and high labour costs. So, if there are benefits in blending automation with artistry then what steps would I take? I’d argue that […]

Adoption of smart practises by manufacturers across New Zealand

New Zealand’s manufacturing sector has stepped firmly into the fourth industrial revolution, with a 10.5 percent increase in the use of advanced manufacturing technologies since 2023, as shown in the final Industry 4.0 Insights Survey by Callaghan Innovation. The Industry 4.0 programme was launched to build awareness and educate New Zealand’s manufacturing sector about the powers of digitisation and connectivity in manufacturing. And, while it’s achieved this goal with 80 percent of Kiwi manufacturers aware of the programme, for Sean Doherty, Industry 4.0 Product Manager at Callaghan Innovation, the real impact has been how quickly that awareness has turned into action. “What seemed experimental five years ago, has quickly become business as usual for many Kiwi manufacturers,” he says. “Manufacturers are increasingly recognising the value of advanced technologies as essential tools for growth and resilience. We now have nearly 40 percent of the workforce implementing Industry 4.0 technologies.” From AI and robotics to real-time data tracking, manufacturers are turning to smart technologies to lift productivity, improve quality and modernise operations. It’s already seen that Industry 4.0 technologies such as AI, digital twins or cloud technology are able to increase productivity by 15-30%. Supporting this momentum, the recently introduced Investment Boost scheme offers manufacturers an immediate 20 percent tax deduction on eligible machinery and equipment purchases. “Capital investment often presents a significant challenge for manufacturers,” says Doherty. “This incentive helps lower that barrier to entry, making it more feasible for businesses to invest in automation, AI and other advanced tools. It’s a promising development and will help keep momentum built through Industry 4.0.” However, Doherty stresses that “technology alone isn’t enough, investing in people and company culture is critical for lasting success.” To view the full Callaghan Innovation Industry 4.0 Insights Survey report, visit: https://www.callaghaninnovation.govt.nz/assets/documents/Industry-4-0/2025_Industry4_Insights_Survey_FINAL.pdf

The Canterbury engineering business with trained staff who never want to leave

Training at the heart of exporter’s success story An unwavering commitment to upskilling its people has helped keep tool maker Sutton Tools (NZ) out in front despite a string of setbacks including an earthquake, a pandemic, and in 2022, a fire that gutted their Kaiapoi factory. Now though, the future looks brighter than ever with a brand-new factory in Rangiora and a forward-focussed masterplan that will drive expansion and power up their knowledge base. Sutton Tools manufactures its high-quality cutting tools in Rangiora, as well as at two sites in Victoria, Australia before exporting them globally. Adopting a proactive approach to training has been a critical factor in their success, and a long-standing partnership with industry training organisation Competenz has been pivotal to this work. For over 30 years, Competenz has collaborated with Sutton Tools, offering apprenticeship and traineeship opportunities to enhance skills and engagement. Production Manager Brian McCallum has spent just shy of 25 years with the company and in that time, he has completed a string of Competenz programmes including a New Zealand Certificate in Workplace Health & Safety Practices (Level 3), a National Certificate in Competitive Manufacturing (Level 4), and a National Certificate in Manufacturing (Metal and Related Products) (Level 3). Currently he’s working towards his NZ Apprenticeship in Mechanical Engineering (Trade) (Level 4) – Fitting and Machining. “I went to Sutton for work experience when I was 17 and I never left,” says Brian. “In that time, I’ve been given lots of opportunities and done lots of different things within the company, including gaining qualifications and temporarily relocating to Australia after the fire to help with running one of the manufacturing plants in Melbourne.” With a myriad of development and career prospects – and a highly supportive, encouraging employer – he can’t see a reason to […]

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Living in an apartment, near the railway line

On a business trip, I travelled on the Tokaido Shinkansen Bullet Train between Tokyo and Nagoya and, was taken by the number of apartments along the side of the track, at Bullet Train speed. And they all had one thing in common on their balcony: a dog kennel, a satellite dish, plants and clothes lines. Nowhere to walk, no ground level space to kick a ball around. I wonder what the thinking is around 15 storey apartment buildings around the new Auckland railway stations? Is it to ensure the trains have patronage and the huge spend on their development justified? The Government wants Auckland Council to make apartments possible. “Ensuring that Auckland takes economic advantage of this transformational investment in the city”. I wonder how many Government ministers will move there? Apartment buildings can bring problems – lots of people in a built-up area without social cohesion, finding ways to get into each other’s way and an over familiarity with one’s neighbours which doesn’t necessarily lead to a quality of life. The economic advantages for engineers, architects, developers, interior decorating consultants and so on will be great. And may also continue to see trades people in Auckland continue to have work instead of crossing the ditch to Australia. If people live in a large city, they need a quality of life for day-by-day accessibility to work, education and social events. But why live in a large city, in an apartment, by a railway line? Why not move to the regions where you have greater choices of more competitively priced housing and greenfields where the family can play? -Doug Green, Publisher, NZ Manufacturer www.nzmanufacturer.co.nz publisher@xtra.co.nz

Engineering the future: What we’re seeing from the front line

By James Richardson, Commercial Manager, Caliber Design At Caliber, we work alongside some of New Zealand’s most innovative engineering businesses. With over 60 mechanical engineers seconded into client teams across the country, we get a front-row seat to the future—watching it take shape in factories, labs, and workshops up and down the country. We see a lot. Some of it makes headlines. Most of it doesn’t. But it’s all part of a bigger story: Kiwi engineering delivering smart, practical solutions to complex problems. Aerospace There’s serious momentum in aerospace. Autonomous systems, propulsion tech, advanced structures—this is no longer niche R&D. It’s a growing sector with commercial focus and technical depth. What we’re seeing is a shift from “can we?” to “how fast can we build it?” Projects are fast-paced and multi-disciplinary, and the bar for design quality is high. It’s a brilliant space for engineers who like a challenge. Energy The energy sector is diversifying quickly. Hydrogen, renewables, and electrification are driving a lot of new activity. But equally important is the work happening to modernise and optimise existing systems. This is where Caliber engineers often slot in—helping deliver upgrades, commission new assets, or unblock critical path items on capital projects. It’s hands-on, collaborative work that has real impact. Materials Materials innovation is accelerating. We’re seeing more advanced composites, more recycled and recyclable options, and clever use of analysis tools to get the most out of every design. But materials are only as good as your ability to design and manufacture with them. That’s why FEA, prototyping, and validation are becoming non-negotiables—especially when time-to-market is tight. Where We Fit Our model is simple. We provide seconded mechanical engineering support—when and where it’s needed. Our engineers embed directly into our clients’ teams, working under their direction to help get projects delivered. […]

Industry 4.0 for SME manufacturers

Article 4 – from a series of 5 – From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -Frank Phillips, Director, Fulcrum Article 4: The Significance of Systems in Industry 4.0 and Automation Welcome to the next part of our Industry 4.0 series for SME manufacturer. We’re exploring various companies that can help you embrace advanced technologies and optimize your operations. Today’s focus: Manufacturing Systems. Let’s dive in and see how they can drive your business success. Systems: The Backbone of Modern Manufacturing In the dynamic landscape of Industry 4.0, systems are the backbone that supports and streamlines manufacturing operations. These companies specialize in providing software solutions such as ERP (Enterprise Resource Planning), MES (Manufacturing Execution Systems), CMMS (Computerised Maintenance Management Systems), APS (Advanced Planning and Scheduling), and various other tools designed to solve challenges and manage processes more effectively. Think of them as the digital frameworks that enable smooth and efficient manufacturing processes. Streamlining Operations: How Systems Add Value Manufacturers often grapple with issues like disjointed processes, lack of visibility, and inefficient resource management. Engaging a systems provider can address these challenges by implementing software solutions that integrate and optimize various aspects of manufacturing operations. By leveraging these systems, manufacturers can achieve better coordination, real-time visibility, and enhanced decision-making capabilities. Implementing Success: Typical Engagement and Resource Requirements The journey with a systems provider typically begins with a comprehensive assessment of your existing processes and systems. This phase involves site visits, technical evaluations, and collaborative discussions to identify pain points and opportunities for improvement. The systems provider then establishes to what extent their solution meets requirements, the optimal configuration and any customisation that might be required. Expect to allocate internal resources, including IT personnel, process engineers, and operations managers, to work closely with the systems provider. The engagement would typically take several […]

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