Methven tapping into new market

Methven's export drive won't stop the flow in New Zealand, writes RICHARD BRADDELL.

Methven Tapware, New Zealand's largest tapmaker, intends hitting the Australian market after completing a management buyout in February.

The company is now 50 per cent owned by management, including chief executive Rick Fala.

The balance is owned by AMP Henderson Private Capital, with Pencarrow Private Equity managing AMP's involvement.

Methven sells about 10 per cent of its $30 million production to Australia, the Pacific Islands, Europe and North America.

Tapware's status as fashion items in kitchens and bathrooms is growing, and Mr Fala believes Methven taps will compete increasingly effectively in Australia.

Methven estimates its New Zealand market share at 52 per cent, up from the low 40s four years ago.

In New Zealand, it owed much of its success to its popularity among plumbers, Mr Fala said.

But in Australia, builders and developers made most buying decisions, making existing distribution agreements with Australian building supply companies and developers vital to the expansion.

Founded in Dunedin by George Methven in 1886, the company has gone through several ownership changes. It was owned by the British McKechnie group for many years until a 1998 Australasian management buyout that included other operations.

It now employs 130 staff, mostly in Avondale.

Although he has Australia in his sights, Mr Fala said exports would not be pursued at the expense of New Zealand business.

"We've learned in the past that New Zealand customers have to always come first," he said.

"We used to treat the overseas customers with perhaps more deference than our New Zealand customers and we paid the price."

He said Methven had previously focused its export effort on other product lines.