Office furniture design takes front seat

By LIBBY MIDDLEBROOK

Thousands of American bottoms could be on New Zealand-designed furniture next year.

Wellington-based furniture maker Formway Furniture has signed a deal with Bretford Manufacturing, licensing the United States company to manufacture and distribute its office furniture throughout the US, Canada and Mexico.

The three-year deal is expected to generate more than $1 million next year for privately owned Formway, which won two gold medals at the World Trade Fair in Chicago this year for its ergonomically friendly office furniture - the "Free" system.

Rick Wells, Formway's managing director, said: "If New Zealand is going to be competitive on the international market we need to market our own unique, locally designed furniture.

"This deal is a great way for us to access the US market."

Formway, which has been making furniture for more than 40 years, already exports about 40 per cent of its products to Australia.

Mr Wells said the company opted to license an American company to produce its furniture because it could not fill orders quickly enough from New Zealand.

"We just couldn't deliver to customers in a short enough time from New Zealand."

Formway will collect a licence fee from Bretford Manufacturing as well as royalties based on the amount of furniture sold.

Mr Wells said Formway hoped to sign a similar deal with a European company next year.

From sales worth $420,000 and a staff of 12 in 1981, when the company was bought by the present owners, Formway now employs 170 people in three plants - two in Wellington, one in Sydney - and has annual sales of $25 million.