PDL expands because of big ‘product explosion’

Press, 16 August 1984, Page 22

PDL expands because of big ‘product explosion’

A "product explosion” for PDL Holdings, Ltd, meant that the group would spend more than $BOO,OOO on new buildings in Christchurch this year, said the managing director, Mr Don Sollitt, at the annual meeting yesterday. The 77 per cent increase in the group’s outside sales in the first four months of the latest year had meant that production space was at a premium, he said. After the meeting, he said about 5800 sq m of new buildings were being erected to handle the big Klh in company sales, use of the development of new products. PDL’s annual report shows that this year the group has 69 staff working on developing new products, including electrical and shelf appliances, heating, hair care, cosmetic containers, and packaging. Also the company will spend more than $2.5 million on new tooling and dies. But, PDL is not without its problems as Mr Sollitt told the meeting that the group had just been notified about price increases of about 28 per cent in three items, and the group had not had any price increases in its own products for two years and 67 days.

“It is no wonder that we get snarly and abrupt when we see other industries inflating prices. “If New Zealand is going to recover, and it is to be export-led, then we can’t inflate faster than our export partners, such as Australia and the United States,” he said. The annual report also shows that PDL increased its staff by 223 people, or 27 per cent, in the last 12 months, but the chairman, Sir Robertson Stewart, told the meeting that the group was having terrible trouble finding staff.

“To us there is no unemployment in New Zealand. We can’t find people with the right technical skills.” In addition, head-hunting executives by other companies was a problem, Sir Robertson said, but added that PDL probably did its share of head-hunting as well.

During the first four months of the new financial year, the group had increased net sales (excluding intercompany sales) 77 per cent to $29,681,000. Exports were up 42 per cent to $3,495,000. Including sales within the group, the increase was 58 per cent to $37,937,000.

“These results are in real

terms as we have not had a price increase since May 17, 1982,” Sir Robertson said. Interestingly, the net sales of the first four months of the new year, were equivalent to 80 per cent of the total net sales the group achieved in the 1982 year,. Sir Robertson said.

The directors had attempted to gauge the future under the new Government The 20 per cent devaluation would have two effects on the group, making export prices more competitive, but raising all imports of raw materials and components 25 per cent. “We have been looking carefully at the consequences of these decisions and the effects on the company. We are not certain of the Government’s intentions regarding export incentives which have been such an important factor in building PDL’s export markets,” Sir

Robertson said.

The second move by the Government to lift the controls on interest rates had produced an additional cost to the company of between $500,000 and $600,000, money that could have been spent on new plant and equipment.

The third Government move was to continue the price freeze for a further three months, but “we will not be able to predict the over-all effect on the group as much will depend on the outcome of the summit conference planned for next month.”

The directors were confident that local and export sales would continue to increase because of the policy of installing the latest plant working around the clock, researching the markets for the products, and by buying materials and components at the best local and international prices.