03 March 2004

3 March 2004

NZ $56 million plus for a $20,000 investment is a good return.

Investment New Zealand’s role in facilitating the connection between Brunswick New Technologies, and the Auckland electronics firm Navman was money well invested, New Zealand Director Ross Campbell said today.

“Thanks to the Brunswick connection, Navman is now working towards becoming globally successful company with sales revenue of one billion dollars over the next five years, and staff numbers have increased by more than 60 since the Brunswick deal was signed.

“In the view of the Brunswick Corporation, Investment New Zealand played an important role in facilitating this investment and in the subsequent investment that Brunswick has made in another New Zealand company with high growth prospects, “ Mr Campbell said.

Mr Campbell said attracting investment is a particularly competitive business with approximately 2500 other investment agencies operating in the world, all targeting similar high worth deals.
 “As a country we cannot afford the programmes that other countries and even states such as South Australia can – South Australia, for example, provided Westpac with tax breaks and other incentives totalling between included $16 million to $30 million dollars to establish a national loans centre in Adelaide.”

Investment New Zealand’s visiting investor programme regularly covers the costs of business class airfares, accommodation, and internal travel costs associated with the itinerary organised for the investor.

“We don’t just bring anyone to New Zealand. We’ve often been researching potential prospects and working to build a relationship with the investor for quite some time.  They come here as our guests.  Part of the package we offer is showcasing New Zealand  and personalising the attractiveness of New Zealand – an emotional bond to this country often translates into business.”

Investment New Zealand’s role is to grow the New Zealand economy by matching high-growth companies with potential international investors who have something to offer New Zealand companies. 

Their expertise lies in identifying quality foreign direct investment and bringing the capability of New Zealand companies to the attention of investors who often know little about New Zealand.

For the financial year ended 30 June 2003, Investment New Zealand recorded 11 successful projects that in total will generate NZ $484 million in inward foreign investment and create 1,921 jobs.

“We also consider how an investment will contribute to the growth of other parts of New Zealand’s economy.  We call this the ‘multiplier’ effect and the Navman deal is a good example of this.  Their growth is turn substantially benefiting other New Zealand businesses particularly their electronics suppliers,“ said Mr Campbell.

If New Zealand is to achieve its economic growth goals, and get back into the top half of the OECD, it needs more quality foreign direct investment, said Mr Campbell.

“We don’t have enough large global companies, particularly in the high-value sectors, and the way we are going to get more of them, more quickly is through foreign investment.

“It is not just access to capital that foreign investors bring – what international companies can also do is provide routes and access to markets, expertise, management capability and technology that would takes years for New Zealand companies to develop on their own.

“At the end of the day it is these successful New Zealand companies that grow our country’s wealth.  Without them we will be struggling to afford the lifestyle we currently enjoy including our education, health and social services.”

For further information contact
Ross Campbell
Director New Zealand
Tel: 04 910 4384
Mobile: 027 242 1270

Distributed by Fiona Acheson, Communications Consultant, Investment New Zealand Phone: 04 910 4378, Mobile 027 230 2517, Fiona.acheson@nzte.govt.nz

EDITOR’S NOTES:

The Navman Deal – The Facts
Navman New Zealand is market leader of world-class navigation devices.   It took the company 18 years to grow sales to $100 million and, since the Brunswick deal, the company is working towards becoming a $1 billion company in terms of sales, over the next five years. 

Sales are expected to reach $140 million this year and staff numbers are expected to increase by 100 by the end of the year. Navman is in the top 100 corporate taxpayers in NZ, and next year is likely to move into top 50.

The company is expanding its premises in Auckland, moving into a new 80,000 sq ft building, and has also opened new sales offices in France, Germany, Belgium and Italy.

Brunswick has provided Navman with access to markets, human capital and financial capability to fund this growth and undertake possible acquisitions, world-wide distribution channels and collaboration with Brunswick on research and development.

Brunswick produces approximately 50,000 boats a year that may provide additional market potential for Navman equipment.   Navman’s expertise in GPS technology and its application to the growing in-car and personal navigation market is also a key area where the Brunswick association is expected to help leverage sales.

General deal details

• Deal date concluded. = 23.06.03
• 63 jobs added since the deal concluded in June 2003
• Total projected jobs to year end estimated at 100 new positions
• Money invested by Brunswick at purchase of 70% = $54.6M

Brunswick boat group profile

• World's largest pleasure boat manufacturer
• 60 brands across 19 countries
• 2002 sales of US$1.4 billion (Global retail market size is US$10.0 billion)
• Builds 50,000 boats above 16 feet / year.
• Leader in innovation, electronics integration and closed molding manufacturing technology
• 17 manufacturing plants in the United States, Canada, Mexico and the United Kingdom

New opportunities the deal opens up for Navman:

• Improved access to global markets in marine, and in-car navigation technologies

 R&D

• Navman spent $10M on R&D in 2003, rising to an estimated $18M in 2004.
• Employ over 130 engineers