April 2005
Overview
New Zealand companies have forged an international reputation in the defence industry for technical innovation, design, quality and reliability. The small but active New Zealand defence industry concentrates on niche products and services and is set to tap into a predicted world-wide growth of international spending on defence.
The ANZAC class frigates project, a joint venture between the governments of New Zealand and Australia, has been a major stimulus to New Zealand's defence industry capability.
New Zealand companies provided more than $800 million of work on that project to construct 10 frigates, representing more than 6000 man-hours of work. The ANZAC project also provided a platform for New Zealand defence contractors to develop the technology skills to create world-class products to win further contracts, both at home and abroad.
Other major defence contracts in Australia involving New Zealand companies include the Minehunter programme, the Hydrographic Ships project and the helicopter Training Support Ships project.
Major markets
New Zealand companies are engaged in defence contracts with Australia, Singapore and the USA. Australia is the most significant destination, accounting for almost half of all exports. About 30% of exports go to Singapore and another 10% to the United States. New Zealand companies also export to China, Southeast Asia and Europe, particularly smaller specialist companies operating in niche areas.
Significant products
New Zealand has a number of defence engineering companies equipped for specialist refurbishment of aircraft, tanks and other military vehicles, including specialist design and research and development. Rewinging the P3 Orion fleet was a world first, giving the Royal New Zealand Airforce virtually a new aeroplane for a very modest price.
The ANZAC work has resulted in a number of niche products, including marine air filtration equipment, electrical switchgear capability, air conditioning systems and even complete hull sections.
Over past decades, New Zealand's defence establishment has drawn from a range of supply and support services from local companies and organisations, and in recent years this has been extended. New Zealand's defence industry today is very diverse and covers a wide range of products from food and clothing, to high tech IT applications and highly sophisticated software development.
New Zealand has clear strengths in maritime and aeronautical maintenance, mechanical and electrical engineering, equipment refurbishing and in the supply of certain defence products. Products and services exported include clothing, components for naval vessels, simulation and the maintenance of maritime and aviation equipment, and equipment refurbishing.
The CT 4E military training aircraft was designed and built by New Zealand company Pacific Aerospace.
Innovation
Innovation is a key feature of the New Zealand's defence industry, born out of the Kiwi 'can-do' attitude. The need to find local, affordable solutions is reflected in the clever and original products developed in this country, ranging from foodstuffs to specialist aircraft and other operating equipment.
One company - Swing Thru - has developed a product playing an increasingly significant role. Originally intended for commercial applications, the company's container-loading crane systems operate from either side of a host. Its value has already been recognised by the New Zealand Defence Forces, which used them in its peacekeeping operations in East Timor. Units have since been sold in Australia, the United States, the United Kingdom and the United Arab Emirates and its success has earned the company a Defence Industry Award of Excellence.
Another New Zealand company is developing fabric with conducting thread woven into it, to enable a variety of electronic applications to be built into military uniforms. Meanwhile, practice hand grenades with the ballistic characteristics of a real grenade have been developed by Flexisolutions.
In the field of aviation, another company has developed a plane that can do the work traditionally undertaken by helicopters, with a short landing and take-off capability and low operating costs.
Flightcell International Limited have developed a "hands free" mobile phone kit for pilot use in light aircraft and helicopters. The product is currently exported to 18 countries and interest has been expressed in a distributorship in the USA. Further evolution of the product is being explored for other aircraft and applications, such as fertilizer planes.
Covertex, which makes products from a flexible coated fabric, built an air hangar which won the Defence Industry Award of Excellence in 2003 and is now developing a large inflatable shelter for the UK Ministry of Defence to trial.
Meanwhile, Noske-Kaeser New Zealand are specialists in air conditioning and offer a range of systems for special conditions, including offshore environments and rolling-stock. With considerable experience in defence, rail, marine, offshore, coastal and land-based applications, Noske-Kaeser New Zealand utilises a range of standard components coupled with custom-built equipment.
Industry structure
The sector is made up of companies ranging from large organizations, for which defence products are a small part of their activity, to smaller companies and even individuals specialising in defence work, often by developing niche products.
As a result of the ANZAC project, many medium-sized general engineering companies in provincial areas around the country have developed expertise in the area and continue to win export work.
Some of the larger companies include navy maintenance specialists VT Fitzroy, army support specialists Serco, and Air Force support companies including Safe Air, Air New Zealand Engineering Services and Pacific Aerospace.
The sector is supported by the New Zealand Defence Industry Association (NZDIA), an incorporated society with all the key defence suppliers, and the Defence Industry Committee of New Zealand (DICNZ), a government policy advisory body formed from the industry together with the Defence Forces. These industry groups have worked to expand the technology base, maximise export earnings and promote regional links and industrial cooperation with other countries.
Industry contacts
NZ Defence Industry Association
PO Box 33-286
Takapuna
New Zealand
tel: +64 9 426-3728
fax: +64 9 426-3748
consol@xtra.co.nz
www.defencetech.co.nz
V T Fitzroy
Private Bag 32903
Auckland
tel: +64 9 446-1815
fax: +64 9 446-1811
www.vtfitzroy.co.nz
Noske Kaeser
P O Box 811
Palmerston North
tel: +64 6 353-0350
fax: +64 6 353-0355
www.noske-kaeser.co.nz
Pacific Aerospace Corporation Ltd
Private Bag HN3027
Hamilton
tel: +64 7 8436144
fax: +64 7 8436134
www.aerospace.co.nz
