Potential newbuilding deal for NZ

A major shipbuilding contract worth hundreds of millions of dollars could be heading to Whangarei in New Zealand. The Whangarei District Council will be discussing an offer from Culham Engineering to buy a block of council-owned land in the port area. The company is believed to want the block, which is near its own property, so it can land a lucrative contract to build ships, possibly freighters or tankers. The 7.1-hectare block juts into Whangarei Harbour and is bordered on two sides by tidal streams, making it ideal for industries needing sea access.

The company is understood to have offered the council between $2million and $2.5million for the block but, to sell, the council will have to overturn a motion from September 2004 that the block can only be leased to Culham Engineering, Norsand or Pacific Motor Yachts Ltd.

A New Zealand Trade and Enterprise spokeswoman confirmed Culham Engineering was in the running for a major boat building contract. “NZTE identified an opportunity offshore and brought that back to New Zealand companies, including Culham Engineering,” the spokeswoman said. Culham Engineering took up that chance and was doing due diligence, with NZTE facilitating between the parties over the deal.