Trailer Magazine

Steelbro New Zealand enters voluntary receivership

  • Posted on Wednesday 11th, December 2013.

Steelbro New Zealand has gone into voluntary receivership. The 135-year-old manufacturing company has announced it will be shutting down its Christchurch-based facility and moving its production to Asia.

Australian law firm, Ferrier Hodgson, has been appointed as Receivers and Managers of Steelbro New Zealand under the provisions of its debenture agreement with the Commonwealth Bank of Australia. Earlier another company, PPB Advisory, was appointed its Voluntary Administrators.

Reportedly, Ferrier Hodgson is now in control of the company’s assets and is undertaking an ‘urgent assessment’ of its financial position. The decision to cease manufacturing side-lifters in Steelbro’s Christchurch facility, however, is irrevocable.

“In order to offer our clients the continued quality, durability and innovation of Steelbro side-lifters while meeting the increasingly diverse regulatory requirements of the many markets, the company has made the decision to phase out production at its New Zealand factory. Other parts of the Steelbro side-lifter business will continue to operate as usual,” the company said in a statement to Trailer.

Going forward, Steelbro said it will supply side-loader cranes and controls from a purpose-built manufacturing facility in Tianijn, China – producing matched chassis in each destination market, tailored and customized to meet the local requirements of that market.

“Steelbro has already been successfully supplying some markets from its Tianjin factory for a number of years and the experience to date has allowed us to ramp up production in this facility, while maintaining the quality and durability expected of Steelbro product,” the company commented.

As a result of the move, some 60 Steelbro New Zealand employees will be progressively laid off between now and April 2014 as orders in hand are completed.

The receivership does not cover Steelbro’s parent company, the Steelbro Group, which is headquartered in Victoria, Australia.

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