Prefab building manufacturer in Otago gets funding

Published: Jun 12, 2020 · Updated: Dec 1, 2020

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The Provincial Growth Fund (PGF) is investing in a new company that will manufacture high-tech prefabricated timber buildings for residential and commercial use.

Hector Egger New Zealand under construction in Cromwell

Hector Egger New Zealand's factory being built in Cromwell.

Hector Egger New Zealand, based in Cromwell, will receive a $600,000 loan from the PGF.

The company’s innovative prefabricated building will increase options in the construction market, provide cost certainty and is faster than traditional building methods.

Set up by two New Zealanders, Hector Egger New Zealand is a joint venture with Hector Egger Holzbau AG in Switzerland.

This initiative will help pump money into Otago’s economy sooner and create jobs, which will help offset the economic impact of COVID-19.

Having another manufacturing business open in the region is also a step in the right direction to help diversify the local economy.

The factory will start manufacturing for residential and commercial projects in January 2021.

The company will create up to 25 jobs for carpenters, computer numerically controlled (CNC) machine operators, designers, project managers and administrative staff.

There will be an apprenticeship programme and training opportunities for employees across all areas of the business.

Cromwell-based suppliers of construction-related products and services can expect an increase in business through Hector Egger outsourcing work.

Hector Egger New Zealand's prefabricated houses and buildings will be assembled by qualified carpenters using high-tech German CNC machinery.

The company estimates it could produce the equivalent of 100-150 houses a year from sustainably-sourced timber and building materials.

The project aligns with the PGF wood-processing funding principles to encourage the growth of modular housing and offsite manufacturing solutions.

The building of Hector Egger New Zealand's factory employed 20 people from Cromwell and the surrounding areas, and up to 10 local businesses supplied material and services.