Mountain Buggy commits, F&P moves

22 Aug 2008 17:21NZPA

One New Zealand company with a famous product committed to manufacturing it here today, while another with equally legendary products advanced plans for production offshore.

Mountain Buggy said it planned to continue to hand assemble its strollers in New Zealand.

"Mountain Buggy firmly believes in quality and the rewards of investing in their local community to both them and their customers, in terms of product quality, support, flexibility and other less tangible benefits far out weighs the reduced labour costs in China," the company said.

Almost at the same time Fisher & Paykel Healthcare Ltd was telling shareholders of progress on plan for a new manufacturing facility offshore.

Demand for Fisher & Paykel Healthcare's products is expected to double in size in the next five years and the company is investing in its East Tamaki site.

But it has also signalled plans for an offshore manufacturing plant.

"The new facility will be located closer to our major northern hemisphere markets and we expect it will reduce manufacturing and freight costs, provide shorter delivery times and will spread our geographic risk."

Over 98 percent of the company's sales are from exports.

Fisher & Paykel Appliances is also currently shifting production of many of its products to Mexico, Italy and Thailand in a move that devastated its workforce.

 
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