Southland plant enjoys perfect location

Southland plant enjoys perfect location

The location of Daiken Southland (DSL) plant amidst a strong pool of suppliers of its raw product continues to be a key strategic advantage for the company.
Daiken New Zealand finance director, Geoff Shea, says having a consistently good supply creates a competitive edge over the company’s Rangiora plant, but when it comes to production, the two plants are very complementary.
“One of the key reasons Daiken acquired the Southland plant was because of the availability of raw material, as opposed to expanding our operation here in Canterbury,” Geoff says.
“We were quite constrained to expand in Rangiora in any way because we just wouldn’t be able to get the raw fibre to meet those expansion needs.”
Daiken Southland is currently undergoing a capital expenditure process to increase production by 5% to 10%.
“The Southland plant was originally built with provision to add a second production line.“This would effectively double production. T
his of course comes at a huge capital cost and there are no immediate plans for this.”
Annual production in Southland is about 200,000 cubic metres of medium density fibre board, (MDF) from a single continuous production line whereas the Rangiora plant has a similar output from two older presses.
Both plants can produce a variety of MDF products from 2.5mm to 30.0mm, thick board, but the Southland plant is focusing on a higher percentage of the thickest boards because it is more efficient and cost-effective to do so than at Rangiora.
Standard MDF board is used in a multiple of interior applications such as joinery, lacquered furniture, furniture mouldings, built-in furniture, shelving, wall-linings, partitions, floor linings, pattern making, toys and many other possibilities.It is also an excellent substrate for natural wood veneer, vinyls, printed papers, foils and melamine papers.

Southland plant enjoys perfect location
Daiken NZ acquired the Southland MDF plant at Mataura in 2018.

Innovation and adaptability are the cornerstones of Daiken’s processes, enabling it to produce MDF products that meet customer needs throughout the Pacific, Asia and America.
Environmental factors are a huge part of Daiken’s business, from the renewable supply of ethically grown raw materials, to limiting emissions of products insitu.
Daiken Southland operates under quite stringent resource consents; but that aside – there is a general company ethos to be a highly responsible manufacturer in what is largely a rural environment,” says Geoff.
“It’s paramount to the way we do business,” he says.
The Daiken Southland plant was the first greenfield industrial plant to be established under the Resource Management Act (RMA) in New Zealand.
Consequently, the plant operates under resource consents that establish operating guidelines for land use, water use and for plant discharges.
The company has a dedicated environmental department that monitors the plant’s activities against permitted levels and communicates these results to the local authority and neighbours.
All Daiken New Zealand production meets ISO9001 international standards, and is managed according to IS014001 international environmental management system standards.
Whenever possible, source wood is harvested from plantations that meet the Forest Steward-ship Council’s (FSC) stringent environmental social and economic standards.
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