Mood of the Boardroom: ETS claims early victim

Aerosol manufacturer Arandee Industries has survived the challenges of the global recession well, but will soon move offshore because of the emissions trading scheme.

Founder and executive director Ron Greer said the company had survived the domestic industrial downturn and held its own in the specialist aerospace aerosol market but would not survive the ETS if it stayed in New Zealand.

Auckland-based Arandee, which takes its name from "R & D", was launched in 1972 and has 13 staff.

But its size belies its strength - it has contract manufacturing in New Zealand and offshore and is one of only three players in the lucrative global aerospace aerosol business.

That business is booming - the company has won contracts to fill insecticide aerosols for use in aircraft and electronic blower sprays - but more regulation and the impact of the New Zealand ETS on aerosols from 2012 has all-but ended its future here. "We will be headquartered in Singapore because we already have manufacturing in Malaysia, the United States and Thailand as well as in New Zealand," Greer said.

Prospects for running a chemical business offshore were good because of the ability of the company to develop new products.