Copper coup for Christchurch

By Joe Helm

The loss of a contract by BICC Cables in Melbourne to supply copper telecommunication cable to Telstra has provided an unexpected windfall for Christchurch.

BICC has now transferred all the copper cable manufacturing equipment from its Melbourne plant to its Riccarton factory in Christchurch.

The Melbourne factory previously supplied 60 per cent of Telstra's copper cable but became uneconomic when BICC failed to win a contract to supply 100 per cent.

The decision was made to relocate remaining production volumes to Christchurch, with the loss of 240 jobs in Melbourne.

The move will create about 50 new jobs in Christchurch.

"It is good news for the New Zealand telecommunications industry and wonderful news for Christchurch, which does not often see manufacturing plans drift across the Tasman in this direction," said Bryan Preston, managing director of BICC Cables New Zealand.

Technology manager Chris Stoelhorst said he was could not give an accurate figure on the capital investment being made at the Riccarton factory but it was several millions of dollars.

The move involves the installation of about 100 shipping containers of manufacturing equipment and 40 smaller plant items.

Mr Stoelhorst said: "Moving so much plant and equipment was a huge exercise, but the transfer of technology,such as designs and specification - all the essential local knowledge - has been even more challenging.

"The range of cables to be produced for the Australian market is similar to the company's New Zealand products, but with many variations in the specifications and production processes.

"We've had to capture that knowledge in Christchurch without the luxury of time to bring production up to speed gradually."

All the copper product resulting from the increased production will be exported, primarily to Australia.

Production at Riccarton is expected to increase 15 per cent initially, with the potential to increase exports to Australia by significantly more.

Installation of the production lines began in early December and is scheduled for completion by the end of May.

BICC Cables New Zealand produces a wide range of cable from fuse wire and speaker flex to high voltage aerial conductors,telecommunications and data products and underground energy cables.