Donaghys bucks trend, takes on staff

Donaghys is bucking a trend of decline in Dunedin's manufacturing sector, taking on about 16 extra staff and making rope for Team New Zealand's America's Cup campaign.

The company, founded in Dunedin in 1876 and producing farming products and specialist rope, had shifted its Melbourne and Invercargill operations to Dunedin this year, bringing about 16 jobs to the city.

Rope and cordage business manager Tony McDonald said the ropes it supplied to Team New Zealand were an example of the ''high end'' manufacturing which allowed it to stay competitive from Dunedin.

The fact the company was working at the ''very edge of technology'' meant it was not fighting a losing battle against ''cheap Third World'' manufacturers, Mr McDonald said.

''You play in a different ball park once you are starting to come up with solutions for problems that no-one else can fix.''

The company had supplied the rope to New Zealand America's Cup challenges since Michael Fay's ''New Zealand Challenge'' in 1987.

He believed Team New Zealand had kept using its ropes because they were reliable and the company kept ''pushing the envelope'' in terms of the technology used to make the ropes stronger and lighter.

Its rope had never failed on Team New Zealand to date, but it was still nerve-racking whenever there was a Team New Zealand gear failure.

If Team New Zealand won the cup back it would probably provide a boost to its business.

''Definitely once you are in the winner's circle with your product, people start to take notice and you start getting calls from all around the world.''

Managing director Jeremy Silva said Donaghys had invested more than $3 million over the past 12 months to open six new production lines in its Dunedin factory.

''Where it's practical, Donaghys has brought manufacturing here, enabling us to pass on quality and cost benefits to farmers. Onshore manufacturing is against the trend of New Zealand's agricultural market and being based in Dunedin is especially rare,'' he said.

The new production lines included veterinary products such as animal health drenches, stock markers, electric fencing and specialist ropes.

In order to be internationally competitive, Donaghys had evolved from mainly providing low-margin commodity products to an increased focus on specialised products with higher intellectual property levels.

-vaughan.elder@odt.co.nz

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