The fate of a much heralded industrial park next to Fisher & Paykel Appliances’ Dunedin plant appears to be hanging in the balance.
Dunedin City Council has put aside $1.5 million to establish an industrial mini-cluster for F & P’s big manufacturing suppliers, including an unnamed Christchurch firm, on 1.5 hectares next to its factory near Mosgiel.
But since the council announced its funding 18 months ago, delays have plagued the project, now in a state of limbo, and the council and F & P each say they are waiting for the other to make the first move.
Hints that Christchurch’s Long Plastics, which makes polystyrene and plastic packaging for F & P products, was probably involved have never been confirmed and the company yesterday was saying nothing.
The council’s strategy and development general manager, Peter Brown, told BusinessDay commercial considerations had “severely affected” the time frame of the development.
Buildings and services were to have been on site in the middle of last year but only the planning and design for the infrastructure and for the first of four buildings had been finished, he said. There was no indication when, or if, the park would be completed.
“We are hopeful that it will still happen. Fisher & Paykel are still very keen to see it happen. We’re not able to move it at this point. We’re relying on Fisher & Paykel to do that.
“The ball is currently in F & P’s court and we are waiting to hear back from them.”
F & P spokesman Brian Nowell said the matter was between the council and “anybody (companies) they wanted to work with”.
“While we would be interested in anything that might develop in that area, our business is going on irrespective of where our suppliers are located.
“It comes back to the economics for the supplier. If it makes sense for them to be there (Mosgiel), fine. If it makes more sense to be in Timbuktu, it’s up to them.”
Mr Nowell would not comment on whether the park would go ahead.
In July 2003, Mr Brown hinted that a big Christchurch firm would play a key role in the industrial park. Five months later, he said negotiations were continuing but remained tight-lipped on details.
In May last year, Mr Brown said agreements were being finalised and planning for the industrial park was nearly complete.
The $1.5 million pledged by the council for the development is part of more than $7 million of support it has put toward expansions of the Mosgiel plant, including extending existing buildings for lease to the company for them to buy back later as well as rates relief.
From Stuff.co.nz