Fisher & Paykel Appliances on hiring spree after ramping up R&D

Tuesday 5th August 2014 1 Comment

Fisher & Paykel Appliances, the home-appliance maker acquired by China's Haier in 2012, is seeking some 40 workers for research and development after opening a new design centre at its Auckland headquarters.

The company spent about $5.5 million on the new Auckland facility with another $1.5 million still to be invested, and is spending some $2.5 million to fit out its Dunedin R&D facility. F&P Appliances has hired 80 engineers and designers in the past 18 months. It is now one of Haier's five global 'centres of excellent' for product development in the group.

Haier New Zealand Investment Holding, which holds 80 percent of F&P Appliances, invested $36.3 million on property, plant and equipment in the nine months ended Dec. 31, 2013, and $7.9 million between Aug. 29, 2012 to March 31, 2013, according financial statements lodged with the Companies Office. Its accounts show it had revenue of $777.1 million through the final nine months of 2013. Haier New Zealand incurred research and development expenses of $17.9 million in the 2013 period, and $7.2 million in the 2012 reporting period. The other 20 percent of F&P Appliances is held by another Haier unit.

The Chinese company effectively rescued F&P Appliances in 2009 when it acquired a 20 percent stake as part of a capital raising that let the company refinance its debt. The local manufacturer got distribution into China as a result of the deal and the ability to further licence its technology.

Chairman Keith Turner said Haier has allowed F&P Appliances to remain an 'independent' business within the group.

"They have been hugely supportive of the company and the brand. Very clearly the mandate has remained," said Turner, whose chairmanship dates back to the time when the company was listed on the NZX.

BusinessDesk.co.nz

Comments from our readers

On 6 August 2014 at 9:48 am Colin said:

Another icon Kiwi company sold out to overseas interests for 1.27c per share.All because of a $90,000,000 debt which the govt. and Kiwi Saver could of bought out. It is probably worth over $3 per share now that they have the 30,000 outlets in China to sell into, that they would not allow the old Kiwi company to sell into.Not to mention the up and coming Indian market. I know this, because I got a threatening letter saying if I don't sell my shares, the share price will go back down to where it was. What they should have said is keep your shares until we get the rights to sell into the 30,000 outlets in China.For that reason I will never buy another F&P product. But thats just my 2c worth. Colin