Manufacturing News

Sealegs to work with overseas boat manufacturers

 

Auckland amphibious boat company Sealegs plans to work with overseas boat manufacturers. The move is intended to allow it to expand overseas.

Stuff.co.nz reports that the company recorded a profit of $204,000 to March 2013. The result follows a $1.8m loss in the same period last year.

The company’s profit finished at $16m for the year. This was helped by an 18.6 per cent increase in sales revenue.

According to Sealegs Chief executive David Glen, the plan to work with third parties overseas acknowledges that it is not economic to build larger boats in New Zealand.

"That being the case, we're under no illusion that whilst we're very excited about the potential for the larger technology that we're developing, in doing so we need to identify and collaborate with some of the best boat builders in various countries around the world to get that technology to market," he said.

A major impediment to export is the fact that tariff barriers effectively make New Zealand-made boats too expensive for overseas markets.

As such, Sealegs has begun selling overseas manufacturers technology kits which are used to produce larger vessels.

"We see a lot of upside potential and that's where we see the real growth in the business going forward: leveraging the existing and new technologies that are coming down the pipeline and finding a number of boat builders around the world who can make use of it," Glen said.

 

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