Fisher & Paykel Appliances has opened a $220 million global headquarters in Auckland, backing its New Zealand operations even as parts of the country's manufacturing sector face mounting pressure.
The new Penrose campus will become the company's global centre for research, design and product development, with appliances continuing to be manufactured in Thailand.
Chief executive Stuart Broadhurst said the nearly 23,000-square-metre headquarters represented a long-term investment in New Zealand.
"This is where we do all of our new product development and innovation for our brands around the world," he said.
The investment comes as several manufacturers have announced closures or job cuts in recent months, including Heinz Wattie's, Talley's and timber opertations in Kaitaia.
Broadhurst acknowledged global uncertainty, including the impact of US tariffs, was affecting the business, but said its focus on premium appliances had helped cushion the blow.
"It affects our business. But by selling in luxury, we can really mitigate those impacts," he said.
"We're also focused on selling high-value packages of products rather than individual low-value items."
Appliance manufacturer stares down global volatility and leans further into the luxury market. (Source: 1News)
The company is targeting customers building high-end homes in markets including the United States, Canada and the United Kingdom.
Broadhurst said that strategy also made the business less exposed to downturns in the housing market.
"When you're selling to the new-build market where people are building multi-residential homes or high-end luxury homes, those peaks and troughs are smoothed out."
Fisher & Paykel Appliances expects to generate between $1.8 billion and $2 billion in revenue this financial year.
Employers and Manufacturers Association head of advocacy and strategy Alan McDonald said recent factory closures had attracted attention but they did not reflect the entire sector.
"It's tough for the people involved... but a lot of our manufacturers are also exporters, and the manufacturing sector's been going well," he said.
He said the sector was improving, but any recovery was likely to be gradual.
"It's going to be a long, slow recovery rather than a big fish-hook, kind of J-shaped recovery."
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