Commitment to Long Term Local Manufacturing

Media Release
23 April 2007

General Cable Commits to Long Term Local Manufacturing

New Logistics Centre to Serve Asia-Pacific Region

Christchurch-based cable manufacturer and exporter General Cable has underlined its commitment to retaining local production with a $2 million warehouse and storage development.

The company, one of Christchurch’s largest and longest-established manufacturers, will consolidate much of its Australasian storage at the new 7500 square metre facility on its Riccarton site.

The new project goes against the trend of local manufacturers relocating offshore, says General Cable New Zealand General Manager Andy Lester. “This warehouse is a real positive – at a time when a lot of manufacturers are closing doors, we are opening them.”

“This comes on the back of General Cable experiencing consistent growth in all sectors of its export and domestic business,” Mr Lester says. “We’re confident that growth will continue.”

The company’s recent successes have included strong sales into the telecommunications and energy sectors both offshore and in New Zealand. General Cable has a turnover of over $200 million annually and employs more than 420 people, with 300 of them in Christchurch.

The new logistics centre, with frontage onto Blenheim Road, includes a 2000 square metre warehouse, 4500 square metres of hardstand and ancillary facilities. Development started in January, and the company expects the hardstand to be in use by June and the warehouse facility in July.

General Cable Logistics Manager Dave Shepherd says the project will significantly streamline the manufacturer’s extensive storage operations and help to control internal logistics costs.

“A primary aim of the project is to bring all our raw material storage back on site, under General Cable control,” he says. “With the volumes of production we’re currently achieving, our throughput of raw materials is pretty high. We’re bringing in close to 2000 containers a year of materials such as PVC, polythenes and steel wire from the United States, Europe, Asia and Australia.

“Up till now we’ve had to store these materials at a number of separate locations both here at Riccarton and at other sites. Bringing these all on to one location will mean significant operational efficiencies, as well as cost savings in logistics and transport.”

In addition to handling raw materials the new facility will allow General Cable to consolidate finished products destined for Australia on the Christchurch site.

“We can now ship product direct into our Australian warehouses from centralised stock held on our Christchurch site, giving us better stock management, reducing inventory costs and providing a higher level of service to our customers,” Mr Shepherd says.

The company is also looking forward to a more integrated operation at its regional headquarters, which covers four hectares between Blenheim Road and Main South Road. Over recent years storage space has been at a premium, and with the continued growth in exports containers were increasingly being held at ad hoc locations on the site.

“The new facility will give us dedicated storage pads, with improved handling and logistics systems, and will also help to minimise any health and safety issues around the site, Mr Shepherd says.”

The development site was originally part of a larger block on the corner of Watts Road and Blenheim Road. Some 5500 square metres of the block has been sold to help fund the current development, and is currently being privately developed as a commercial and light industrial area.

Aside from substantial site works, the redevelopment has been technically straightforward, according to Mr Shepherd. The warehouse building is constructed in concrete tilt slab and steel, and includes a high-specification sprinkler system. The hardstand area includes a comprehensive system of dedicated concrete container pads. Main contractor on the project is Hanham & Philp Contractors Ltd.

Andy Lester says the project is the largest development on the site since the mid-1990s when the company was gearing up for significant expansion in its manufacturing capacity. General Cable runs five production facilities on the site manufacturing energy, electrical, telecommunications and data cables and flexible cabling products.

About General Cable

General Cable (NYSE: BGC), headquartered in Highland Heights, Kentucky, is a leader in the development, design, manufacture, marketing and distribution of copper, aluminium and fibre optic wire and cable products for the communications, energy and specialty markets. The Company offers competitive strengths in such areas as breadth of product line, brand recognition, distribution and logistics, sales and service and operating efficiency. Communications wire and cable products transmit low-voltage signals for voice, data, video and control applications. Energy cables include low-, medium- and high-voltage power distribution and power transmission products. The Specialty segment is comprised of application-specific cables for uses such as electrical power generation (traditional fuels, alternative and renewable sources, and distributed generation), the oil, gas and petrochemical industries, mining, industrial automation, automotive, marine, military and aerospace applications, power applications in the telecommunications industry, and other key industrial segments. Visit our website at www.GeneralCable.com.

ENDS

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