Tenon general manager Mark Taylor says the impending sale of the company’s USA distribution company will not affect operations in Taupo, New Zealand. Source: Stuff NZ
Tenon Ltd shareholders voted to sell the publicly-listed company’s USA marketing and distribution business for $US110 million at its annual general meeting on November 18.
GM Mark Taylor said that despite the sale, it would be business as normal for the Taupo site, which employs 300 people.
“We’ve got a supply agreement to continue to sell to Empire, who distribute our product to Lowes [home improvement store] in the USA,” Mr Taylor said.
The Taupo company exports 80% of its high-quality finished “clearwood” products to the USA, Europe, Australia and China.
June’s annual report disclosed an annual revenue of US$430 million.
“I look at the last 18 months and we’ve seen consistent growth in all our markets,” Mr Taylor said. “The economic recovery is ongoing and as US consumer confidence grows, we see them purchasing more of our products.”
Although the Tenon parent company was currently doing a strategic review of its assets, there was no cause for any concern about the future of the Taupo plant, he said.
“When you look at the size and complexity of the operation, the skilled people we’ve got on site, the markets and customers we’ve got and the investment in new technology that’s been made, there’s every reason to have a positive outlook on our future.”
Local operations were unlikely to be affected, even if the scenario arose where the Taupo plant went up for sale, Mr Taylor said.
“Irrespective of who owns us, you don’t buy something like this to close it.”
Mr Taylor said two large capital purchases for the plant, such as an optimising board edger, had been made in the last year. The purchases cost a total of US$7m.
“For me and the site, that was the board [of directors] showing confidence in the Taupo site.
“You don’t invest in this gear unless you are very clear about the markets you’re selling into and the strength of the operation.” Taylor said Tenon sought new employees in the new year.
“We’d like to have the best people in them [job roles] so we can continue driving the business forward.”
