Industrial and agricultural rubber product maker Skellerup will enter into a contract with Calder Stewart Industries to build a Dairy Rubberware Development and Manufacturing facility in Christchurch.
Construction of the 18,900 square metre facility in the suburb of Wigram is scheduled to be completed by December 2015.
The approximately 200 staff now employed at the earthquake damaged Woolston facility are expected to begin the staged transition to Wigram immediately upon completion.
Skellerup CEO David Mair said in a statement the integrated layout of the new facility offers considerable efficiencies over the multi-building complex at Woolston.
"In addition to providing improved working conditions for staff, the new facility will capture process, flow and efficiency gains, further strengthening the operations of our dairy rubberware manufacturing business,” he said.
Calder Stewart was awarded the fixed price design and build contract for the construction of Skellerup’s new Dairy Rubberware Development & Manufacturing facility following a competitive tender.
Total project investment inclusive of levies and project management costs is estimated at approximately $30 million which is partially covered by insurance proceeds from the settlement with insurers in respect of the damage suffered at its Woolston site from the Canterbury earthquakes of 2010 and 2011.