20 March 2006

New Zealand’s marine industry is forecasting strong growth in the year ahead as its reputation for quality, innovation and superior performance continues to attract keen international interest.

Companies specialising in the construction and supply of marine components, hardware and interiors for the superyacht sector are particularly positive, on the back of a buoyant market in both Europe and the United States.

Despite difficult international trading conditions and a strong New Zealand dollar throughout 2005, recreational and workboat industry exports topped NZ$535 million (US$370 million) for the year.

A number of New Zealand companies, including Auto Anchors, Fastmount and Alloy Yachts, were also recognised for their innovation, work skills and products at a range of international events and shows in 2005.

“New Zealand’s marine industry is in a strong growth period,” says Heta Hudson, a Business Development Consultant for Investment New Zealand.

“We continue to be sought after because of our world-leading capability in a number of areas and smart companies are doing well, despite trading challenges in the international marketplace.”

New trade opportunities are also opening up for the industry as a result of a Free Trade Agreement recently signed with Thailand and a Closer Economic Relations agreement with Malaysia.

China is seen as a promising emerging market, with New Zealand marine companies having booked double the space they took in 2005 at the China International Boat Show.

New Zealand has a window of opportunity in the Chinese market, as the first country to start and finish negotiations for a Free Trade Agreement.

In addition to gaining a toehold in new markets, a number of New Zealand companies are continuing to develop strategic alliances with international partners. For example, Actuant Corporation has purchased the outstanding stock of Auckland-based BEP Marine, along with an earn-out tied to future earnings growth, and will use BEP’s power control panels and distribution systems to manage electrical power on its boats.

In another New Zealand initiative, McDell Marine is now representing the world-famous Oyster brand and has recently developed and is producing the new Oyster LD 43 Power Boat.

For more information on New Zealand’s marine industry visit www.nzmarine.com or email heta.hudson@investmentnz.govt.nz.