Two crowdfund investors in failed Balex Marine have bought the Tauranga company's assets because they say its boat loader is too good to fail.

Two expat Kiwi businessmen who participated in Balex Marine's $330,000 equity crowdfunding have now bought the automatic boat loader's assets from the liquidator for an undisclosed sum.

The innovative loader is "too good to fail", they say.

Liquidators were appointed to the Tauranga-based company and its sister firm Suelex last month after Balex couldn't find a new funding lifeline when high costs and slow sales had drained its coffers.

The boat loader raised $330,000 through 80 investments via equity crowdfunder Snowball Effect in October, just above its minimum target.

Participants included expat businessmen Daniel Given and Reon Oak, who run Hong Kong-based manufacturing and supply chain firm Gait International.

They bought the Balex assets including its intellectual property, stock and work in progress, they said in a statement on Wednesday. The assets will be poured into a new company - Balex Marine South Pacific - which will be based in Tauranga.

Gait International had already taken over the management and supply chain operations for Balex's automatic boat loader, and Mr Given said they plan to draw on their current business to support the new Balex.

The automatic boat loader "is incredibly well engineered, utilises the best in high precision components and has already gained remarkable traction in the market," Mr Given said.

"Reon and I only invest in companies that we really believe in and the Balex automatic boat loader is simply far too good to be allowed to fail."

Gait International is affiliated with Tauranga-based Gait Trading Co, which was set up by the Given family in 1989 as a wholesaler of residential locks and latches to the building sector.

It will continue to supply the boat loader to New Zealand and Australian boat manufacturers and marine dealers, and that the new entity is close to finalising a deal with a European distributor.

It also plans to look at entering the US.

The Commerce Commission has published one-page summaries of key performance measures for each of New Zealand’s 29 electricity lines companies.

The summaries are designed to promote a better understanding of each lines company’s performance by providing high-level statistics such as profitability, capital and operating expenditure, asset condition, revenue and network reliability.

Commissioner Dr Stephen Gale said that the Commission has pulled together the data to make it easily accessible for industry, Government agencies and consumers, and to enable comparison across lines companies. The statistics are sourced from more detailed public disclosures.

“Electricity companies reach every New Zealand household and business so over time we want to make it easier for consumers to understand how their own lines company is performing year-on-year. The information in the summaries is still quite technical in nature, but we expect this kind of exposure will in itself help improve lines companies’ overall performance,” Dr Gale said.

“The summaries are a high-level snapshot of the lines companies and are not intended to represent a thoroughly detailed picture of performance. However, they suggest some differences between the performances of different lines companies, such as the health of assets including poles, lines and substation equipment. In cases of apparent poor performance, we will follow up with the companies to better understand their circumstances. We will also undertake further analysis in the future.”

The performance summaries are available on the Commission’s website.

Background

Where did the data for these summaries come from?

The summaries are based on the most recent information that was publicly disclosed by each electricity lines company under our information disclosure requirements (covering the year ended 31 March 2016). Most of the data has either been audited and/or certified by the directors of the businesses. However, we cannot guarantee that there are no errors in the data provided. We have not included Transpower, the national electricity transmission business.

What is the Commission doing to address potential issues of concern?

Lines companies themselves are ultimately responsible for managing their own networks. The Commission cannot get involved in the operational decisions each company makes. However, these summaries are part of a wider programme of performance analysis, which can shed light on the decisions of lines companies and any consequences.

Of the 29 lines companies in New Zealand subject to information disclosure regulation, 17 are also subject to price-quality regulation. If a regulated company breaches quality standards - or example if asset degradation leads to more outages on its network than is allowed - it may face prosecution under the Commerce Act. The remaining 12 lines companies are consumer-owned and are not subject to price-quality regulation.

For more information on our role in the electricity sector see our website.

| A Commerce Commission release  ||  June 9,  2017   |||

A fledgling, cutting-edge cyber security Wellington company has launched a virtual chief information security officer (vCISO) service aimed at helping New Zealand businesses to respond as cyber-crime begins to bite.

Cyber Toa chief executive and NZTech board member Mandy Simpson says cyber-attacks are a serious risk for all Kiwi businesses.

“To be honest, all indications are that cyber-crime is growing in New Zealand. Requests for assistance to the National Cyber Security Centre were up 66 percent in the year to April 2016 and global security provider Symantec put the cost of cyber-crime in New Zealand at $US200 million last year,” she says.

“Our virtual CISO service will help companies concentrate their resources where they can make the most difference in protecting them against this growing threat.

“It’s a growing problem for everyone. A security failure in a New Zealand company or organisation can cause substantial reputational damage and will almost certainly have financial consequences.

“But where a company is handing personal data, it can also have consequences for individuals too. Sensitive personal information can end up in the hands of criminals.

“It’s easy for companies to be overwhelmed with the number of things they must do to stay safe. While some companies can afford a full time chief information security officer (CISO) to deal with the growing risks, not every organisation has resources at their disposal. A virtual CISO allows companies to access our Cyber Toa expertise in a flexible way.

“A virtual CISO can work inside a company helping them to steadily improve their cyber-security stance. What that means is different for every company, but it might include a company-wide risk assessment, developing a response plan if a security breach occurs, or building a security awareness programme for staff.

“And of course, if an incident occurs, a virtual CISO can lead the response, including accessing our specialist team to help. We provide everything required for the virtual CISO to act quickly and protect the company.”

Simpson says the expertise to deal with cyber security incidents can be hard to come by in New Zealand.

Cyber Toa was set up by Chris Ward who has over 20 years’ experience in creating and leading incident response teams for the NZ Defence Force and before that the UK Ministry of Defence. He has represented New Zealand as chair of two executive International Cyber committees, she says.

“Our technical team is led by Tony Grasso, with decades of experience in the New Zealand intelligence community, and GCHQ. The virtual CISO service gives companies access to expertise that would be very difficult for them to directly employ.”

|  A Make Lemonade release  ||  June 9,  2017   |||

The government's principal means of evaluating the success of Callaghan Innovation, the agency tasked with accelerating the commercialisation of innovation, is how much businesses are spending on research and development, Science and Innovation Minister Paul Goldsmith told Parliament's education and science select committee. So far, it's falling short of its target.

This year's budget included a $373 million increase in spending for science and innovation in a bid to help diversify the economy support more jobs and higher wages, including a $74.6 million boost for Callaghan Innovation R&D grants.

In response to questions from Labour's research and innovation spokeswoman Megan Woods about the lack of specific success measures for Callaghan, Goldsmith said: "One of the simpler measures of progress is the overall spending by businesses on R&D and we are seeing that go decisively upwards."

He noted that investments in R&D often take years to come to fruition and it can be difficult to “pin down exactly what the payback is.” Still, the government has a “suite of measures” regarding outcomes and objectives, Goldsmith said.

The government's aim has been to “find a way to encourage companies to invest,” he said adding there has been a 29 percent increase over the past two years in business investment in R&D. Among businesses supported by Callaghan, there has been a 46 percent increase.

The overall spend, however, remains light. New Zealand still lags behind its peers with recent government data showing total R&D investment as a proportion of gross domestic product increased to 1.3 percent in 2016 from 1.2 percent in 2014. The OECD average is 2.4 percent. Business investment in R&D was 0.6 percent of GDP in 2016, well short of the government's goal to lift it to 1 percent.

"We are seeing a significant uptick. It's not as fast as we would like but we are on the way," said Goldsmith.

He also noted that while the government is en route to raising its spending on R&D to 0.8 percent of GDP, there is no timeframe to hit that target.

"We are making progress towards that ... it is difficult when you have a GDP galloping forward to the extent that we have in this country," he said in response to questions. "We will meet the target when circumstances allow."

(BusinessDesk receives assistance from Callaghan Innovation to cover the commercialisation of innovation)

| A Business Desk release  ||  June 7, 2017   |||

A record number of entries to the Reserve Bank’s Monetary Policy Challenge resulted in tough competition with six schools selected for the national final.

The annual competition attracted entries from 53 secondary schools from across New Zealand to step into the shoes of a Reserve Bank economist.

Four Auckland schools – Macleans College, Takapuna Grammar, Kristin School and Auckland International College were named as finalists, along with James Hargest College, Invercargill and St Patrick's College (Kilbirnie), Wellington. Kristin School is the only school from the 2017 finalists to have previously won the title.

The competition is designed to increase students’ understanding of monetary policy by working as a team to assess economic conditions and make a prediction for the Official Cash Rate (OCR) decision. The competition is open to Year 12 and 13 Secondary School students and can also contribute towards NCEA achievement standards.

Reserve Bank economists, who judged the entries, were impressed with the quality of the presentations and the way the schools interpreted the current economic environment.

“We were looking for teams that understood Monetary Policy, could communicate this well and answer questions to apply their knowledge,” Judges Amy Rice and Amber Watson said.

“Students did well analysing issues that are of current interest to the Bank, such as the effect of migration and the drivers of consumption.”

The finalists will travel to the Bank in Wellington for the National finals on 5 July to give an oral presentation and compete for the title of Challenge winner and the winning team will be invited back to the Reserve Bank on 10 August 2017 to attend the Monetary Policy Statement media conference.

MPC website: http://www.rbnz.govt.nz/challenge/

| A RBNZ release  ||  June 7, 2017   |||

Steel & Tube Holdings is facing 29 court charges of making false and misleading representations about its steel mesh product SE62.

The Commerce Commission filed the charges in the Auckland District Court under the Fair Trading Act, relating to conduct between March 1, 2012, and April 6, 2016, the Wellington-based regulator said in a statement. Steel & Tube has been cooperating with the commission throughout the investigation and is working with the regulator to reach an appropriate resolution of the charges, the Lower Hutt-based company said in a statement to the stock exchange.

The regulator started its investigation in August 2015 after a complaint was laid about the steel mesh, which is used in housing and driveway construction, not meeting the standards required in New Zealand. The commission signed enforceable undertakings in late April 2016 with Steel & Tube that the company would only sell SE62 500E grade steel mesh that passed specific independent testing. The undertakings were also imposed on other companies.

The commission said today that the charges allege Steel & Tube made misleading representations on their batch tags, batch test certificates, advertising collateral and website that SE62 was 500E grade steel, when it was not. The charges also allege that false and misleading representations were made by Steel & Tube that SE62 steel mesh had been independently tested and certified, when it had not. This included using the logo of an independent testing laboratory on SE62 test certificates when the product had not been tested by the laboratory.

Charges were also filed earlier this year against Timber King Ltd and NZ Steel Distributor Ltd in relation to false and misleading representations about 500E steel mesh. These companies have entered guilty pleas and will be sentenced in court in August. The commission said it expects to lay charges against one other company, and investigations continue into an additional company.

Steel & Tube has admitted selling “many thousands of sheets” of earthquake reinforcing mesh incorrectly labelled as being independently certified after it used the logo of accredited independent testing laboratory Holmes Solutions on its steel mesh for four years despite it not having carried out the tests. Steel & Tube’s in-house laboratory, which is not independently accredited by national accreditation body IANZ, had been used to test the mesh.

Steel & Tube said today it continues to stand behind its products, and noted that since April 2016 all of its seismic mesh has been tested externally by accredited laboratories.

The commission has previously said that misrepresenting a product as complying with the standard when it doesn't is a breach of the act for which companies can be fined up to $600,000 per offence.

Shares in Steel & Tube last traded at $2.52, and have gained 45 percent over the past year.

|  A Businessdesk release  ||  June 7, 2017   |||

Small Business Minister Dean has today welcomed the release of the Ministry of Business Innovation and Employment’s 2017 Small Business factsheet.

“The factsheet brings together statistics that relate to small businesses, and provides us with an overview of how valuable they are to the New Zealand economy,” Ms Dean says.

“Businesses with fewer than 20 employees make up 97 per cent of all enterprises in New Zealand, and contribute almost $65 billion to our GDP.

“Small businesses employ 29 percent of all workers in New Zealand, and it is important that we continue to support these businesses and help them thrive.

“Other key statistics highlighted in the factsheet are that small businesses created 42 per cent of all jobs in 2015, and salaries in small businesses average $45,867 per annum.

“Currently New Zealand is rated number one in the world for ease of doing business and this is something this government is very proud of.

“Our businesses are young, with 33 per cent of small businesses having existed for less than five years. We must continue to create a supportive environment to help small businesses mature and drive our economy forward.

The fact sheet is released annually by MBIE and a copy can be found here: http://www.mbie.govt.nz/info-services/business/business-growth-agenda/sectors-reports-series/the-small-business-sector-report-and-factsheet

|  A Beehive release  ||   June 02, 2017   |||

Hexcel Corp. (Stamford, Conn.) has entered into exclusive negotiations to acquire all of the shares of Structil SA (Structil), a French producer and supplier of high-performance composites to the aerospace, defense and industrial markets.

The proposed transaction is subject to review by relevant employee representative bodies and approval from the applicable French authorities. Assuming those reviews and approvals are successfully completed, the acquisition is expected to close in 2017.

Structil is a joint venture between Safran Ceramics, a wholly owned subsidiary of Safran, and Mitsubishi Chemical Corp. (formerly Mitsubishi Rayon Corp.). The company employs approximately 70 people at a 68,000-square-foot production plant on a seven-acre site in Vert-le-Petit, France, about 25 miles south of Paris. Structil's 2016 sales were approximately $21 million. The company’s product lines include prepregs, structural adhesives and pultruded profiles used in engine nacelles, aerospace interiors, military jets and more.

Hexcel’s chairman, CEO and president Nick Stanage, stated, “By combining Structil’s advanced composites product portfolio of prepregs, adhesives and pultrusions with ours, this acquisition would further enhance our product offerings to our customers in aerospace and industrial, providing an expanded choice of advanced composite solutions. The integration of the Structil team would also further strengthen our development capability and technologies for next generation aerospace and industrial applications. Hexcel is a Safran First Circle supplier, and this project will further reinforce our strong 30-year-long partnership.”

| Hexcel release  || june 1, 2017   |||

Auckland Airport today formally launched Ara, its South Auckland jobs and skills hub. Ara has connected 211 people living in the airport’s South Auckland neighbourhood with long-term employment and training since it began as a trial in November 2015, and will connect thousands more local people with employers based at the airport over the next 30 years as the company builds its ‘airport of the future’.

Adrian Littlewood, Auckland Airport’s Chief Executive, says: “People in the South Auckland community tell us that having stable work near their homes is important to them. Our location in South Auckland and our 30-year infrastructure development programme put us in a unique position to generate employment opportunities with businesses based here. We’ve set up Ara to connect local people with local jobs.”

Insight Economics has calculated that the benefits of the airport’s 30-year investment in infrastructure include creating around 27,000 more jobs.

“Long-term, local employment benefits everyone in South Auckland – people living here, students studying here and businesses based here, including our airport itself. We’re excited about Ara and what it means for South Auckland and Auckland Airport’s development plans.”

Ara is a charitable trust established by Auckland Airport. It is a partnership between Auckland Airport, the South Auckland community, Fletchers, Hawkins and other local employers, government agencies (the Ministries of Social Development, Business Innovation and Employment, and Education and the Tertiary Education Commission), Auckland Council, local schools and tertiary institutes, industry training organisations and training providers.

Since it began as a trial in November 2015, Ara has placed 227 people in jobs, 211 of whom come from South Auckland. One hundred and three of these 227 people were previously on benefits. Twenty-six people placed by Ara are building their skills through apprenticeships.

In addition, 1,068 people have successfully completed training through Ara. Sixty-eight students from five secondary schools near the airport have been or are currently involved in a work experience programme through Ara to support their NCEA studies.

“While Ara has to date focussed on placing people into construction jobs, that focus is now expanding to include the many industries located around the airport, including logistics, travel and tourism, retail and hospitality,” says Mr Littlewood.

Auckland Airport is investing more than $1 million every working day on core airport infrastructure and expects this level of investment will likely continue into the near future. The major upgrade of Auckland Airport’s international departure area is now well underway, as is the expansion of Pier B of the international terminal which will add two more contact gates that can each accommodate an A380 or two smaller aircraft. Auckland Airport is also progressing the design of the new domestic section of its future combined domestic and international terminal.

| An Auckland airport release  ||  June 2, 2017   |||

Food sector magazine, Foodprocessing out of Australia report that post-harvest fresh and processed handling solutions company Wyma Solutions has announced a formal strategic partnership with North American supplier of fresh produce packaging and equipment automation solutions Volm Companies.

The partnership will allow the companies to work in a closely integrated manner resulting in turnkey solutions that leverage the global experience of both organisations. Both companies will be adding significant sales, engineering, technical service and manufacturing resources and select Wyma products will be manufactured for the North American market.

Continue to the full article here  . . .  ||  June 1, 2017   |||