June 2014 - $30m Skellerup facility

June 2014 - $30m Skellerup facility

Otago-based Calder Stewart Industries is to design and build a new $30 million dairy services manufacturing plant for Skellerup Holdings in Christchurch, on land developed by Ngai Tahu Property.

Skellerup chief executive David Mair said construction of the new building, partially financed by insurance payouts for damage to its Woolston plant, would begin shortly and be finished by December next year.

On completion of the dairy rubberware development and manufacturing facility on the 3.4ha site at Wigram Business Park, Mr Mair said Skellerup's existing 200 staff would then begin a staggered move from Woolston to the 18,900sq m plant.

''This is another significant step for our dairy business and great news for Christchurch,'' Mr Mair said.

Calder Stewart was awarded the fixed price design and build contract, which was formally signed yesterday, with total project investment inclusive of levies and project management costs estimated at $30 million.

''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,'' Mr Mair said.

The site was purchased from Ngai Tahu Property in May last year, he said. It has easy access to Christchurch's airport and Lyttelton port facilities.

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