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Global Positioning System (GPS) technology company Rakon is boosting the floor space at its Auckland headquarters by a third to help cater for a surge in its production volume.
The NZX-listed maker of high performance quartz products has signed a contract to occupy a further 2000sq m in the building adjacent to its Mt Wellington premises, a move that will boost the office and factory space for its 530 staff to 8000sq m.
"We are continuing to see big volume growth that is stretching our space to the limits," Rakon managing director Brent Robinson said.
"Many of our staff have been operating in fairly cramped circumstances due to factory expansion in the current premises over the last year or so."
Rakon announced last month that production levels reached a record 6 million temperature compensated crystal oscillators in November, mainly for GPS applications. That is double the volume it produced in 2006.
According to the Employers & Manufacturers Association, New Zealand needs more companies like Rakon.
"Rakon is a great example of a successful New Zealand company using New Zealand technology and research and development knowledge," EMA chief executive Alasdair Thompson said.
"The fact that a high-value adding firm like Rakon is able to expand investment in New Zealand is excellent because it means more direct returns for New Zealand."
The company wouldn't disclose how much the extra space will cost. In the 2007 financial year, Rakon's rental costs were more than $900,000.
The facility expansion will also aid Rakon's plan to widen its product offering as it targets new growth markets such as the wireless convergence sector, Robinson said.
Last year the company, which has a 60 per cent slice of the global GPS market, said it planned to build a new manufacturing facility in China as part of its strategy to expand globally.
At present, most of Rakon's consumer products are made in Auckland, while the majority of its lower volume, higher dollar industrial type goods are manufactured in factories based in the UK and France.
Despite the increase in production and the extra leg room for staff, the company has no plans to significantly increase staff, Robinson said.
Rakon shares dropped 11c yesterday in a declining market to close at $3.69.
