The Oamaru-based business, which has been manufacturing space heaters and log and solid-fuel burners for about 30 years, was bought by Hynds Group Ltd in May last year.
Hynds Group bought Gillies Foundry and Engineering in 2006, retaining the long-established Gillies name when it renamed it Gillies Metaltech.
Gillies Metaltech initially concentrated on the foundry business, which manufactures cast-metal water-main fittings, valves, hydrants and special-purpose pumps, but the timing was right when the opportunity arose to buy the heating business, Gillies Metaltech general manager Alan Hollamby said.
Gillies had been a leader in solid-fuel domestic home heating - "everybody in the South knows the Gillies name for heating" - and the company used to manufacture up to 100 heaters a week.
But then market conditions changed and clean-air legislation was enacted, resulting in manufacturing being scaled back in recent years.
Now the company is excited about the future, with the production of an innovative down-draft combustion wood-burning heater.
Staff have been working in conjunction with Christchurch-based engineer Roger Best, who has been developing down-draft technology for 12 years.
With an output greater than 55kW, it was intended for large spaces that required high levels of heat and it aimed at 90%-plus fuel efficiency.
Three weeks ago, one of the heaters was installed in Fleur Sullivan's new restaurant The Loan and Merc, in the heart of Oamaru's historic precinct.
The large space, with no insulation, was, in theory, just about impossible to heat - "this would be as challenging as it gets" - yet the restaurant was warm, Mr Hollamby said.
The heater system had three electric fans, including one that stripped the heat from the flue. In a traditional fire, about 30% would be lost in the flue.
The fire, which took a load of 35kg of wood, had a gas starter and was "highly efficient", Mr Hollamby said.
In the future, it might be possible to convert methane gas from dairy-farm effluent to heat water.
Gillies has also been developing a smaller version of the heater, which was aimed at the domestic market.
An eco-heater had also been developed and was being tested.
The company has established a showroom in Tees St - "the warmest place in town", he quipped - and he paid tribute to the loyal and highly-skilled staff, who turned ideas into prototypes.
Hynds Group has also recently bought another Oamaru business, Concretec, a pre-casting concrete manufacturer in Industrial Pl, which employs five staff. It will now be called Hynds Pre-Cast.
