AWA thriving

Press, 20 December 1985, Page 10

AWA thriving

PA Wellington AWA New Zealand, Ltd, expects to triple exports of its telecommunications equipment this financial year, with back orders already standing at more than SSM, according to the general manager, Mr Warwick Bishop. The company is expanding its Porirua factory to keep up with world-wide demand for its “high-tech” goods and over the last 15 months has increased its staff by 100 to 490. The wholly owned subsidiary of Amalgamated Wireless (Australasia), Ltd, contributed 6.7 per cent (SNZ43.SM) of the group's turnover but 10.6 per cent (SNZ2.SM) of its profit. This year Mr Bishop predicts turnover will increase to around S6OM, but profit will fall because of the effects of the Kiwi dollar’s strength for much of the year, removal of export tax incentives and phasing out of import licences.

He estimated the company would make SI2M in net

foreign earnings this year — three times last year’s figure — even though margins had been slashed to remain competitive while the Kiwi dollar was high. AWA New Zealand had to be strong in r.esearch and development — its spending on R. and D. increased 30 per cent to SI.4M this year.

Mr Bishop accepted that export incentives had to go for G.A.T.T. reasons, but said New Zealand should follow the line of Australia, Japan, the United States and European countries and give tax breaks for R. and D. spending. Australian manufacturers could claim a 150 per cent deduction for R. and D. expenditure, including capital expenditure.

Telecommunications equipment manufactured by the company covers mobile radio telephones, base stations and two-way radio links. They have sold to about 40 countries around the world.