More time for capital growth centre

Published in the National Business Review of 10 August 2007

Wellington's publicly funded Industry Development Centre has won another six months of time and more public money to prove it can attract enough private sector support to be self funding.

The centre aims to revive the region's manufacturing base. An experienced German industrial manager, Wolfgang Marbach, has been appointed to run the centre.

When the centre opened in February it had funding for six months of operation from NZ Trade and Enterprise and the Foundation for Research, Science and Technology. It was also backed by the regional development agency, Industrial Research Ltd and Wellington Institute of Technology where it is housed.

It was said then that the centre had to win the financial backing of private sector companies for it to continue.

Nearly six months on, around $55 - $60 000 has been raised from the private sector. That's short of the target, but enough to encourage the public agencies to commit to another six months worth of support, the regional development agency's acting chief executive Phil Lewin said.

"In effect we have done enough to get more time to finish the job," he said.

"There are good vibes and there is goodwill and positive feedback in the Hutt Valley, but that's not enough. The next six months are critical. We have to prove that there is a viable basis for the centre to continue.

Mr. Lewin says the centre had "a small but good selection of projects underway with local companies."

The centre's latest newsletter highlights the value of automation. It cites the work of Dr. Rory Flemmer from Massey University who built a robot to help automate the kiwifruit packing process. It cost $8,000 (excluding labour) and was built to prove that automation is affordable fro New Zealand manufacturers.