Founded by Max Farndale 1947 - 2018
The Spectrim platform, a state-of-the-art technology developed by Compac sorts and grades fresh produce by analysing up to 500 images of each individual fruit. This reduces fruit contamination and ensures that the very best produce reaches consumers. Compac and Spectrim make up 90 percent of New Zealand’s fruit grading technology, over 60 percent of North America’s and it’s continuing to expand in other areas including Europe and China.
Alien
[eyl-yuh n, ey-lee-uh n]
Ever walked into a lecture room and have sets of eyes follow you as if you’ve just landed from a distant galaxy? Or maybe on your first day at work you were tiptoed around as if you were going to kidnap someone and fly away in your flying saucer? Now let’s not get too carried away (pun intended) but as a woman in STEM, at some point in time, you’ve likely been treated like you’re a little out of this world (pun definitely intended).
This month, we would like to honour a successful woman in STEM. We had a chat with Jenna (Tut) Baldock, an Additive Manufacturing Engineer at Rocket Lab (seemingly fitting for us aliens). She shares her experiences of being a woman in a male-dominated field.
Tut studied Design Engineering at Massey, first in Wellington, and then moved up to Albany to finish her degree. She went on to study a Master’s in Applied Physics at RMIT, Melbourne. At RMIT, she worked a project with 3D printing and lasers. She then returned to New Zealand and has been working at Rocket Lab for 2 years now. Tut is part of the Propulsion team that is responsible for designing and manufacturing rocket engines. Specifically, she uses 3D printers to manufacture components for the rocket engines, as well as aiding in the design process and post machining.
Tut is an Additive Manufacturing Engineer. This new, sustainable type of manufacturing technique involves adding layer after layer of material (powder in this case) to parts rather than traditional machining (subtractive machining) which involves cutting away from bigger pieces of material.
1.What inspired you to get involved in engineering and STEM?My dad is an engineer, so it was the logical choice! I grew up in his workshop, helping out with woodwork, welding, and assembling things. At school, I was good at maths and enjoyed science. So engineering it was.
2. What do you like about being a woman in STEM?I like that it always seems to surprise people. You’re usually always the underdog, but if you work hard you can always prove your worth.
3. Have you ever felt that as a woman in STEM, you have been put at a disadvantage?Yes of course! I mean do I even have to elaborate? *laughs*. But I’ve learnt, it’s nice when some people expect a lot from you because of your skills, not because of your gender.
4. Do you regret your chosen field of study?Nope! Not at all! I love what I do, and I love what I studied!
5. Did you ever fail? Be it at uni, a project, at work? How did you overcome that failure?Well, I was a bit of a nerd, I worked hard, and so I never failed as such. At work, I sort of introduced 3D printing for components, and although we did have minor fails along the way, but I guess you have to learn how to use failure to your advantage. Learn from your mistakes and become better at what you do.
6. Do you think people have certain misconceptions about STEM? How do you shut down the haters?I think the older generation, not to stereotype, have an outdated perspective about engineering. An engineer, to them, is an engine mechanic with greasy hands. Today, we have come so far from that idea – engineering is such a broad and diverse field. As for shutting down the haters, the most important thing is to explain. Sometimes, the best way to help others expand their perspective is to logically explain the maths and science behind it.
7. Why do you think women are still so underrepresented in the industry?I would say they might be put off by the idea of being a minority, and that can be really overwhelming.! Many girls just aren’t given the resources to change the notions of it being a man’s job. It is also considered a hard industry to get into, and that can put a lot of women off.
8. How would you encourage girls to get involved in STEM?It’s definitely important to prove your self-worth. Be confident about your skills, but don’t boast about it. Show the world that there is a strong female presence, be it in science, manufacturing, IT, engineering, or anything. Strive hard to be a role model for other girls, and show the future generations that diversity in the workplace is essential for success.
9. What is your recipe for success in a still very male-dominated industry?As the underdog, which no doubt, you will be, you will often find that people don’t really appreciate your skills. You have to work hard to prove yourself. Show that you’re not only good at what you do, you are the best. Work hard, and you will earn the respect you deserve.
10.What are your personal goals for the future?I’m happy where I am at, right now, with my career. I do want to focus on improving personally though/ I am good at what I do, but I don’t let it get to me. I always work to improve and try to succeed in other areas.
We would like to thank Tut for sharing her incredible insights with us. We hope that Tut’s experiences have inspired you to jump on a rocket and embrace the alien you are. As women in STEM, we are definitely treated as invaders in foreign territory. So to all the haters, we say: yes we are aliens, and yes we are ready to take over!
P.S. sorry for all the puns, I did not planet!
By: Zainab Manasawala
Interviewed by: Zainab Manasawala and Sreenidhi Roshin.
| An AUT STEM Woman release || September 21, 2017 |||
The NZMEA signals an even stronger focus on supporting globally competitive manufacturers with the launch of a new nameWith the changing face of manufacturing and the increasing global opportunities advanced technologies offer, the NZMEA has introduced a new and simply stated name supported by a strong logo that reflects where it wants to take the industry into the future - The Manufacturers’ Network.
“We are hugely proud of our history, having supported manufacturers and manufacturing since 1879. But today the industry is different. With a global reach and growth opportunities relying more and more on collaboration, strong networks and an indepth knowledge of future trends, it was time our name reflected these values, clearly and simply, says Mr Dieter Adam, CE, The Maufacturers’ Network.
Today, manufacturing in New Zealand faces many challenges. Manufacturers need to hold their own and want to grow their business in an increasingly interconnected and highly competitive global environment. Whether it’s through exporting or competing with imports, it’s all about remaining globally competitive. To achieve that, manufacturers need support now more than ever.
“Manufacturers need a champion and an expert immersed in trends and opportunities who they trust so they can get on with running their businesses as competitively as possible, knowing we have en eye on the future. That’s where we fit in, says Adam.
“The Manufacturers’ Network represents the best of our collaborative spirit and smarts. We are a Network because we know that working together, and collaborating locally, allows us to compete globally, to stay up with - if not ahead - of trends, and to remain agile and efficient.
“We have deliberately chosen to use THE ahead of Manufacturers’ Network as it shows strength in what we do. Our focus is narrow and deep. We are THE Manufacturers’ Network, focused on supporting New Zealand manufacturers — the people behind the industry,” says Adam.
Manufacturing is the second highest contributor to GDP and we know that making a difference to this sector will make a difference to New Zealand and New Zealanders. Given this, the focus of The Manufacturers’ Network will be that of a specialist support network.
“I have recently returned from Hanover Fair, Germany, and built relationships there which will be invaluable going forward. Our networks aren’t just amongst the New Zealand industry but globally too.
‘There was a gap and we have made a commitment to filling it. As The Manufacturers’ Network, we are the experts in manufacturing,” says Adam.
| A Manufacturers Network release || September 22, 2017 |||
The New Zealand economy continued to grow solidly in the June quarter, posting a 0.8 per cent increase in GDP, taking New Zealand's growth rate for the year to 2.7 per cent, Finance Minister Steven Joyce says.
“Our economy continues to outperform many developed nations, underpinned by strong export and domestic demand,” Mr Joyce says. “It is still a challenging international environment, which is why we need to continue with an economic plan that is working for New Zealand.”
New Zealand’s growth over the last year has exceeded that of Australia, the United Kingdom, the USA, the Euro area, Japan, and the average across the whole OECD.
Growth in the quarter was across 11 of 16 industries, including:
Exports rose 5.2 per cent, with exports of goods posting its biggest quarterly increase in 20 years. Overall growth in the quarter was partially offset by the construction sector, which contracted 1.1 per cent in the quarter but up 6.4 per cent from June 2016.
Today’s GDP figures followed on from the release of New Zealand's external accounts yesterday, which showed a current account deficit of 2.8 per cent for the June year.
"This week’s economic growth statistics show that the Government’s consistent economic plan is encouraging businesses to invest and grow more jobs for New Zealanders. It is important to maintain and support business confidence if we are to continue our progress in the years ahead."
| A Beehive release || September 21, 2017 |||
Written by Rural News Group the red meat sector looks to government for action. The red meat sector has eight key priorities and believes the next government can play a key role in bringing about positive change.
Environment
• Continuing to improve the sustainability of our production is a top priority. We are committed to improving our water quality and further reducing the sector’s GHG emissions.
Our leaders recently committed to bringing New Zealand’s rivers back to swimmable levels and we are working on further ambitious targets for the environment.
The incoming government can help by:
o Working with the sector to develop environmental policies focused on the outcomes we want to achieve and that recognise different farming systems can meet these outcomes in different ways.
o We need government support with research and the tools to give us answers on the best way to build productive, sustainable environment.
Trade
• We are an export-focused sector: 90% of NZ’s sheepmeat production and 83% of beef production is exported. We continue to face major tariff and non-tariff barriers around the world that affect our competitiveness.
The incoming government can help by:
o Continued leadership on trade liberalisation, including negotiating high quality FTAs and putting resources into tackling non-tariff barriers.
Food Safety
• Food safety is critical to the meat industry and for maintaining consumer confidence. NZ is recognised as a world leading in its industry and regulatory systems.
The incoming government can help by:
o Continuing to provide government services in an efficient and cost-effective way and to maintain the high performance of NZ’s regulatory system for food safety, market access and reputational reasons.
Biosecurity
• Incursions of pests and diseases are among the biggest risks to the sector and could be catastrophic to the NZ economy.
The incoming government can help by:
o Continuing to invest in a strong biosecurity system aimed at keeping pests and diseases out and working with industry to improve capability and systems to respond to those which arrive.
Animal Welfare
• NZ has high animal welfare standards. Farmers and meat processors work hard to ensure their animals are well cared for and treated humanely.
The incoming government can help by:
o Continuing to partner with the sector to enhance the animal welfare systems in NZ and promote NZ’s good reputation in this area.
Innovation
• Huge innovation and productivity improvements have occurred in the sheep and beef sector, onfarm and in processing. The sector is committed to striving for further improvements.
The incoming government can help by:
o Continuing to partner with the sector and ensuring its investment strategies include long-term support for sheep and beef sector innovation and growth.
Employment
• We represent NZ’s largest manufacturing industry and our processing companies employ some 25,000 people nationwide. We strive to employ NZers first. Every year, however, we need to bring in about 100 Halal slaughterers to support a fundamental component of the industry’s business model and to meet Halal regulatory requirements. The processes for this are lengthy and complex and expose the industry to significant risk.
The incoming government can help by:
o Putting Halal slaughterers on the long-term skills shortage list or finding other practical solutions to provide a secure pathway to source necessary workers from overseas.
Health & Safety and Training
• Working with livestock and machinery means the sector has health and safety hazards that need to be well managed. Industry leaders are committed to improving the sector’s health and safety performance and creating a safer work place.
• Having a skilled workforce is extremely important to the sector and we are investing in training systems to upskill workers, promulgate industry standards and promote the sector as a career pathway.
The incoming government can help by:
o Supporting a strong partnership between WorkSafe NZ and industry; and
o Supporting the sector in developing new qualifications to accelerate career pathways and maintaining and expanding the funding model with the Primary ITO.
| A RuralNews release || September 21, 2017 |||
Acquires CommInsure and Sovereign, enters long-term distribution partnership with CBA and ASB
AIA announced today that it has reached an agreement to acquire CommInsure in Australia and Sovereign in New Zealand. It will also enter into 20-year strategic bancassurance arrangements with Commonwealth Bank of Australia (CBA) in Australia and ASB Bank (ASB) in New Zealand. Subject to regulatory approvals, the acquisition is expected to be completed in 2018.
The acquisition and partnership agreement will deliver a range of important benefits to AIA and our stakeholders, including:
It will make AIA the leading life insurer in both Australia and New Zealand’s profitable individual life protection segment It will be immediately accretive to AIA’s earnings It will add to AIA’s strength in retail and group insurance by materially expanding and strengthening AIA’s distribution capabilities and customer reach to CBA and ASB’s combined base of 13 million customers
AIA Australia and New Zealand CEO, Damien Mu said: “The scale and nature of the agreements with CBA and ASB represent an enormous step forward for AIA in the pursuit of our purpose to make a difference in people’s lives, and will significantly transform and expand our market leading presence in Australia and New Zealand.”
“By partnering with CBA and ASB, we can bring together the expertise of each organisation to further improve our offering to help champion Australia and New Zealand to be the healthiest and most protected nations in the world. This is an excellent outcome for all customers that we help not only through financial protection, but also by improving their health and wellbeing.”
Mr Mu said, “We have a strong history of building trusted, engaging and enduring partnerships with leading financial institutions in Australia, New Zealand and across the region. We look forward to welcoming our new team members from CommInsure and Sovereign in due course, and to building a successful partnership with CBA and ASB. We remain absolutely committed to our existing partners, and will be focused on ensuring that we continue to deliver the best possible outcomes for them and their customers.”
AIA Regional Chief Executive, Bill Lisle, said: “AIA Group is deeply committed to Australia and New Zealand and we are excited about our future in both markets, particularly in light of the highly attractive agreement we have announced today. We have a high performing and very experienced team in Australia and New Zealand, which is part of AIA Group, one of the largest and strongest life insurance companies in the world. We look forward to ensuring that the acquisition and bancassurance partnerships we have agreed to with CBA and ASB generate very positive and enduring benefits for our customers in both markets and indeed all of our stakeholders.”
Theresa Gattung, Chair of AIA Australia, said: "This is an exciting opportunity for AIA Australia to further strengthen our leading positions in both markets and to serve our customers. We have a great team, and we look forward to expanding on this with the Sovereign and CommInsure teams in due course, and building our partnership with CBA and ASB. I would also like to thank my fellow Board Members Peter Yates, Elizabeth Flynn and Paul Costello for their contribution and support during this time."
ABOUT AIA AUSTRALIAAIA Australia Limited is an independent life insurance specialist with over 40 years of experience building real and sustainable partnerships. The company employs over 900 people. AIA Australia offers a range of products that protect and enhance the lives of more than 3.3 million Australians and is widely recognised as a market leader in product innovation and development. In 2016, AIA Australia paid over 16,000 claims totalling over AUD$1.1 billion.
AIA Australia is the country’s second largest life insurer with a market share of 14.6% and total inforce premium of over AUD$2.3 billion. The company works closely with major financial institutions and corporate partners to provide life insurance solutions for their customers. AIA Australia is the number one group insurer by inforce premium. In addition, AIA Australia is the fastest growing provider of retail life insurance products sold through financial advisers, ranked number one for new business on a rolling 12 month basis, with a market share of 16.8%. AIA Australia also works with a network of affinity partners that distribute life insurance products. By having a partnership philosophy at the core of its business, AIA Australia is focused on building genuine relationships and delivering real value to its business partners.
In March 2014, AIA Australia introduced ‘Vitality’ – the world’s leading scientifically-backed health and wellness programme, to the Australian market. AIA Vitality aims to be the catalyst for real change to the positive health outcomes of Australians.
ABOUT AIA NEW ZEALANDAIA New Zealand is a member of the AIA Group and employs over 140 people. Since the company arrived in New Zealand in 1981, AIA New Zealand has consistently provided the market with innovative personal and business insurance products that suit the Kiwi way of life. Over the last quarter, AIA New Zealand led the market for new business sales in corporate solutions.
Today AIA offers a complete range of risk management products that focus on the needs of customers. AIA New Zealand is based in Auckland with regional offices in Wellington and Christchurch. However, through a network of financial advisers, AIA reaches every corner of the country.
AIA New Zealand is a member of the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ). Standard and Poor’s reaffirmed AIA New Zealand’s insurer financial strength rating at AA- in June 2016.ABOUT AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$200 billion as of 31 May 2017.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
| An AIA release || September, 21 |||
Former McLaren employee John Nicholson, who prepared Can-Am and F1 engines for the team and played a key role in the World Championship victories of 1974 and 1976, has passed away in his native New Zealand. He was 75.
Nicholson was also a gifted driver in his own right, and he even briefly made it to F1, competing in the 1975 British GP as well as four non-championship races. Although he never raced a works McLaren, he did a lot of testing for the team, driving Can-Am, F5000, F2 and on occasion F1 machinery.
John was born into a mechanical background in 1941. His father, who was an armourer in the air force, raced powerboats in New Zealand, and in his youth John helped to prepare them. From school he went to work for an engine reconditioning business, and he undertook a four and half year engineering apprenticeship – and in his final exams he earned the top marks in the whole country.
He had a few races in his father’s boat before he began competing on four wheels, initially in karts. He then acquired a Lotus Elan, and subsequently a Lotus 27 single-seater. In 1968 he took part in the New Zealand GP, a round of the Tasman Series – and thus joined a grid that included Bruce McLaren, Denny Hulme, Jim Clark, Chris Amon, Pedro Rodriguez and Piers Courage. In an uncompetitive car he finished ninth, albeit many laps down.
He later replaced the Lotus with a year-old Brabham BT18. He then decided to head to England, with an ambition to race in F3, and after earning some cash as a mechanic in the Far East he arrived on May 9th 1969. Like many Kiwis before him, he saw McLaren as his natural home.
“I’d contacted a few friends in Britain concerning a job here and had written to Bruce McLaren,” he said in a 1974 Autosport interview. “But I’d never met him, nor knew who he was. I arrived on the Thursday, and went straight to Earls Court.
“Meanwhile my friends had talked to Phil Kerr at McLarens and on the Saturday I took the Green Line bus down to see McLaren. I went in round the back and two guys recognised me, Alan McCall and Jimmy Stone, but there was this guy with his back to me. When I asked to see Mr McLaren he turned round and said, ‘I presume you’re Mr Nicholson.’”
He’d got the job – he was given responsibility for building the team’s Can-Am Chevy V8 engines, working under the supervision of American George Bolthoff. Bruce duly won the 1969 Can-Am title with engines that Nicholson had helped to prepare in England. John’s driving talents came to good use, and he did some testing at Goodwood.
In late 1969 Bolthoff came up with the idea of setting up an engine shop in the USA at which to prepare both Can-Am and Indy engines. The plan was that John should start the 1970 working in England, before moving to this new McLaren Engines Inc facility in Livonia, near Detroit.
It was of course to be a fraught season for the team. In May Hulme suffered serious burns at Indianapolis, and then in June Bruce was killed at Goodwood in a Can-Am testing accident.
Having headed to the States John wrote to team boss Teddy Mayer saying he wanted to return to the UK, and he did so at the end of the year, after the recuperating Hulme had clinched the 1970 Can-Am title. His timing was good, because Cosworth announced that for 1971 it didn’t want to service the whole F1 grid’s DFV engines. Nicholson was given the job of preparing those of McLaren.
“I’d never seen a DFV in my life,” he said. “I pulled one apart and thought, ‘I’d better go to Cosworths for a couple of days.’ There I was helped by Alan Peck and learnt by pulling them apart and putting them together. With no knowledge, but the help of four good guys and a small place, we set to work doing McLaren’s DFVs. I had to supervise, and it took two weeks for one man to build an engine.
“They didn’t give much BHP, about 400 to 420, although suddenly we got a 440 engine, ‘061,’ Denny’s favourite. These freak engines turned up in many teams during the 1971 season.”
In March 1972 Hulme scored McLaren’s first GP win for three years, and the first with an engine overseen by John, at Kyalami.
It was a busy time for John, for in 1971 he also resumed his own racing career, driving a March in the Formula Atlantic series, before moving to a Lyncar chassis for ‘72. At one stage he crunched the nose at Oulton Park, and unable to afford he a new one, he fitted a McLaren F1 nose that Hulme and tried and rejected!
At the end of 1972 he was offered a job by March Engineering – company boss Max Mosley wanted him to prepare the team’s BMW F2 engines, and there was even a chance for John to race as well. He eventually rejected the offer, but he had itchy feet, and it had set him thinking.
“I went back to McLarens determined to leave, go it alone, and continue in Atlantic. It was a Saturday afternoon and when I got back, Teddy Mayer was at McLarens. I told him what I was going to do, but he wouldn’t hear of it. We went to Phil Kerr’s house that evening, and by the time I’d left, we had a business contract to go into overhauling McLaren’s DFVs as a separate business.”
John found a premises in Hounslow, and with all bar one of his original colleagues, established Nicholson-McLaren Racing Engines in early 1973. That year Denny Hulme scored the new company’s first GP win in Sweden, and later Peter Revson won at Silverstone and again in Canada.
Meanwhile John’s own racing career flourished as he won the 1973 British Formula Atlantic title, repeating his success in 1974. That year also made own foray into F1 with a Lyncar chassis, with which he did the two British non-championship races, although he failed to qualify at the British GP. He would make his one and only Grand Prix start at Silverstone in 1975, crashing out in the rain. The main problem he had was finding the time to fit his own racing around his business, and by 1977, he had decided to hang up his helmet.
He was a busy man off track. In 1974 McLaren ran a third works car, with Hulme and Emerson Fittipaldi in Marlboro colours, and Mike Hailwood in Yardley livery, so there were more engines to service. In addition he picked up work from Graham Hill’s Embassy team. That year Fittipaldi scored McLaren’s first World Championship win, powered by John’s engines.
And the race wins would keep on coming. Fittipaldi finished second in the World Championship in 1975, and then James Hunt scored a sensational title success in 1976. Hunt continued to be a pacesetter in 1977, winning three races.
McLaren then went through a bad patch until Ron Dennis came on board at the end of 1980, and John Barnard’s carbon chassis was introduced for 1981. John Watson and Niki Lauda scored some memorable successes, but the tide was turning towards turbos, and the days of the Cosworth were numbered.
In late 1983 McLaren began the switch to the Porsche-built TAG Turbo, and Nicholson’s involvement with the team was over. However, there would continue to be a link as John turned his attention to servicing DFVs for many historic racing contenders, including of course some McLarens.
John retired to New Zealand several years ago, but the company he founded is still operational, in racing, engineering and aviation, although there has been no direct connection with McLaren for some time.
| A McLaren.com release || September 20, 2017 |||
Memorandum of understanding signed to combine European steel activities in 50/50 joint venture
Positioning as strong quality and technology leader
Annual synergies of €400 million to €600 million expected
Signing of agreement targeted for early 2018 and closing by 2018 year-end
thyssenkrupp and Tata Steel have today signed a memorandum of understanding to combine their European steel activities in a 50/50 joint venture. Their aim is to create a leading European flat steel player to be positioned as quality and technology leader. The new entity is set to have pro-forma sales of about €15 billion and a workforce of about 48,000, currently at 34 locations. Shipments are envisioned to be about 21 million tons a year.
Dr. Heinrich Hiesinger, CEO of thyssenkrupp AG: “Under the planned joint venture, we are giving the European steel activities of thyssenkrupp and Tata a lasting future. We are tackling the structural challenges of the European steel industry and creating a strong No. 2. In Tata, we have found a partner with a very good strategic and cultural fit. Not only do we share a clear performance orientation, but also the same understanding of entrepreneurial responsibility toward workforce and society.”
Natarajan Chandrasekaran, Chairman of Tata Steel: “The Tata Group and thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values. This partnership is a momentous occasion for both partners, who will focus on building a strong European steel enterprise. The strategic logic of the proposed joint venture in Europe is based on very strong fundamentals and I am confident that thyssenkrupp Tata Steel will have a great future.”
To be named thyssenkrupp Tata Steel, the planned joint venture will be managed through a lean holding company based in the Netherlands. It is to have a two-tier management structure comprising a management board and a supervisory board. Both boards are to have equal representation from thyssenkrupp and Tata. The codetermination structures in Germany, the Netherlands and Great Britain will be retained.
thyssenkrupp intends to contribute its Steel Europe business to the planned joint venture. There are also plans for the joint venture to include thyssenkrupp MillServices & Systems GmbH, a steel mill services provider that is part of the Materials Services business. Tata would add all of their flat steel activities in Europe.
The memorandum of understanding signed today paves the way for thyssenkrupp to involve employee representatives at thyssenkrupp AG and in the Steel business in the process ahead on an ongoing basis. All employee participation rights will continue to be respected as before.
In the months ahead, due diligence will be conducted. In the process, the negotiating parties will give each other access to confidential business documents to the extent permissible between competitors. Based on this as well as on discussions with the entire Supervisory Board, it is envisaged to sign a contract in early 2018. Closing – the effective start of the joint venture – could take place in late 2018 following antitrust approval by the relevant authorities.
Synergies within the joint venture
In the initial years – from closing onward – the joint venture partners plan to focus on establishing the joint venture and leveraging synergies. These are anticipated among other things from integrating sales, administration, research and development, joint optimization of procurement, logistics and service centers as well as improved capacity utilization in downstream processing. After the ramp-up phase, the joint venture partners expect annual synergies of €400 million to €600 million.
Additionally, the production network is to be reviewed starting in 2020 with the aim of integrating and optimizing the production strategy for the entire joint venture. It is not yet possible to quantify the additional synergies from this integration in detail. The scope for optimization also depends on numerous external factors such as the outcome of the Brexit negotiations and the implications that follow. Other external parameters include the development of the regulatory environment in areas such as emission trading and international trade policy.
The two joint venture partners expect that leveraging the cost synergies across the entire entity will require a reduction in workforce over the years ahead by up to 2,000 jobs in administration and potentially up to 2,000 jobs in production. This burden is expected to be shared roughly evenly between the two parties, which means a total of about 2,000 jobs at thyssenkrupp.
“We will not be putting any measures into effect in the joint venture that we would not have had to adopt on our own. On the contrary: By combining our steel activities, the burdens for each partner are lower than they would have been on a stand-alone basis,” said Hiesinger.
The steel industry has faced massive challenges in Europe for many years: Steel demand is characterized by a lack of dynamic. There is structural overcapacity in supply and constantly high import pressure. This leads to the fact that various stages in the value chain are operating well below capacity. Consequently, all producers are under pressure to fill capacity and forced to pass on restructuring gains to the market time and again. The result is a downward spiral and a need for restructuring about every three to four years, with major steel assets coming under threat of closure in the medium term.
Reasons for partnering with Tata Steel
There are five reasons why combining the European steel activities of thyssenkrupp and Tata is the best possible next consolidation move:
Economies of scale: Economies of scale are a key success factor in a market caught up in ongoing consolidation. Combining the No. 2 and No. 3 in Europe results in a powerful new No. 2 for quality flat steel with a very competitive market position and promising growth prospects.
Complementarity: The businesses of thyssenkrupp and Tata are a good complementary fit. thyssenkrupp is stronger in the OEM sector while Tata’s strength lies with industrial customers. The main operating locations in Duisburg, IJmuiden and Port Talbot have good logistics links and serve customers in different, economically powerful regions. That makes for significantly broader overall coverage of customer sectors throughout Europe.
Performance orientation: The steelworks of thyssenkrupp and Tata rank among the most efficient facilities in Europe. Thanks to effective cost management, both producers operate at a profit. The two companies have paved the way for this over recent years, piece by piece and independently of each other: Tata, for instance, with the restructuring of Port Talbot and by selling long steel activities, and thyssenkrupp with the sale of CSA and capacity adjustment at HKM.
Innovative strength: Both partners aspire to quality and technology leadership in the European steel industry and continually develop innovative products and solutions for customers. High-tech steels are frequently the basis of industrial value chains in Europe and a key competitive differentiator.
Culture and capabilities: The two partners each have a highly capable and dedicated workforce who strongly identify with their company. thyssenkrupp and Tata have a cultural DNA equally characterized by the will to embrace change in order to secure their future. And both companies have the backing of strong shareholders through a trust structure that perpetuate the ideas and values of the original owners.
Further milestone on strategic way forward
Steel Europe will be accounted for on the balance sheet as a discontinued operation after signing. From closing of the transaction, the 50-percent share in the joint venture will be accounted for using the equity method, meaning based on the proportionate carrying amount of the investment. When the joint venture comes into effect, this will bring about a significant improvement in key balance sheet ratios for thyssenkrupp AG, most notably in the equity ratio and in gearing (ratio of net financial debt to equity). At the same time, the move creates a solid financial structure for the steel business.
The planned joint venture marks another key milestone on thyssenkrupp’s strategic way forward. In its evolution into a strong industrial group, thyssenkrupp has two priority aims: reducing dependency on the highly volatile steel business and enabling optimum development of all business areas.
Heinrich Hiesinger, CEO of thyssenkrupp AG: “We have always targeted the best solution for thyssenkrupp. A joint venture with Tata is the only option that addresses the structural overcapacities in the European steel market, that creates substantial added value through synergies and at the same time is in line with our corporate culture. This also marks a clear commitment to our roots, as the joint venture enables thyssenkrupp to retain its involvement in steel.”
New Zealand is rapidly becoming a significant digital nation where technology is positively impacting on almost all traditional sectors such as banking, agriculture and tourism, the NZTech annual report says. Technology's momentum is now pulling along organisations from right across the New Zealand economy and tech has become the country’s fastest growing industry. NZTech chief executive Graeme Muller says their membership is rapidly growing to include not only tech firms but also banks, government agencies, universities and large traditional non-tech corporates. “NZTech has developed a national alliance, like a Star Alliance for tech, which now consists of 12 associations that, as of May 2017, collectively represent 423 organisations, who employ almost 100,000 people. This growing not for profit community is committed to creating more prosperity for New Zealand underpinned by technology. “Working with NZ Story, NZTE and MBIE we have also started the development of a New Zealand Tech Story to assist exporters. The international perception that New Zealand produces good food and is a great place to visit can be enhanced through building our reputation as a high-tech nation. “In May, to further develop our international reputation, NZTech produced Techweek’17. The Techweek team coordinated a national network of event hosts, city partners, government agencies and tech organisations, delivering 287 events across 24 towns and cities during the week. In May 2018 Techweek will be run again throughout New Zealand with a focus on attracting hundreds of investors and international delegates to see our best NZ tech. “Another significant project, the LookSee campaign, was designed in partnership with WREDA, Workhere and Immigration NZ to help attract high quality tech talent to New Zealand. Offering 100 senior developer roles and free flights to job interviews attracted 1.8 million people with 48,000 applying for the roles. We now have a database of over 19,000 experienced tech workers ready to shift to New Zealand if the right job opens up. “In terms of local talent, we have been inspiring girls into tech, by partnering with the Ministry of Youth, to expand ShadowTech Day to eight cities. A day where women in tech roles have a year 10 girl shadow them to experience what it is like to work in the tech sector. Work also continues with the Ministry of Education on the introduction of the digital technology curricula into all schools at all ages in 2018. “NZTech will continue to raise the profile of the tech jobs as great places to work, and tech firms has critical for the future growth of the economy ,” Muller says. The new NZTech board is Mitchell Pham (Augen – and chair), Barrie Sheers (Microsoft), Eva Sherwood (Oracle), Mike Smith (IBM), Paul Deavoll (Spark), Leigh Flounders (Latipay), Melissa Firth (Te Papa), Rachel Kelly (SparkTank), Sarah Hindle (Tech Future Lab), Kim Connolly-Stone (MBIE), Tom Chignell (Unitec) and Robett Hollis (Aranui Ventures). For further information contact New Zealand Technology Industry Association chief executive Graeme Muller on 021 02520767 or Make Lemonade media specialist Kip Brook on 0275 030188
| A MakeLemonade release || September 21, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242
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