US giant sizes up Nelson and Wanganui for outboard motor plant

A multinational company is considering setting up an outboard motor assembly plant in Nelson.

The Nelson Mail says Nelson is understood to be one of two New Zealand sites being considered by the Brunswick Corporation, which produces outboard engine brands such as Mercury.

The other site is Wanganui.

Plans for the export venture were outlined secretly to local body and business leaders, Government officials and politicians, including Deputy Prime Minister Jim Anderton.

But the key person behind the project, Nelson industrial designer Jo Rainey, refused to elaborate, saying it was at a sensitive stage.

Mr Rainey said a feasibility study was being prepared and it would be three to four months before it was completed and decisions made.

He said the project had the potential to eventually be very significant for Nelson.

Brunswick, based in the United States, is the world's largest producer of outboard motors. It has assembly plants elsewhere in the world and is a major boat-builder as well as making bowling and camping equipment.

Last year it had sales of $US4.28 billion ($10.74 billion) and made a profit of $US111.3 million.

Mr Rainey said the low New Zealand dollar had been an impetus for the proposal, along with relatively low infrastructure and labour costs.

- NZPA