Damar Capitalises on Growth

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A Rotorua-based business experiencing substantial growth and success is Damar Industries Limited.

Three recent business acquisitions has seen the company, which specialises in the manufacture of a diverse range of products, achieve a growth rate of 500 per cent over the last seven years.

Ken Wilson, Damar General Manager, says the privately-owned company focuses on the areas of Road marking paints, Forestry paint markers, contract manufacturing of Aerosols, liquid and powder products, and putties and fillers, and also specialist coatings.

The most recent acquisition of Andrew Chemicals Brand in August has seen Damar move into solvent packing and marketing to industrial users and retail consumers, as well as packing and marketing pool care chemicals under the Pool Pride brand.

The April acquisition of Aerosol Products saw Damar become the largest filler of aerosol cans in New Zealand.

Ken says “Each year we fill 10 million aerosol cans. Basically if they are not filled here they will be imported.”

Last year Damar also acquired Linaro, a South Island road marking paints business and now supplies 80 percent of this market.

The business, which turns 20 next year, has been busy over recent months moving the two new acquisitions, which were previously Auckland-based, to the new purpose-built, state-of-the-art three hectare site in Rotorua.

Damar moved to the site at the Eastgate Business Park opposite Rotorua Regional Airport in 2002, providing the opportunity for substantial growth.

“Each of the three manufacturing areas are built as modules. They are totally independent with ramps to contain spills, fireproof doors and water sprinklers to contain fires.

“We work closely with the Rotorua Fire Service to ensure the site is safe.”

The site has ISO-9001 international accreditation and the laboratory which develops and tests products has IANZ accreditation.

Environmental concerns are also critical to Damar and an onsite water-treatment plant ensures no toxins can pollute the local environment.

“The local council are very proactive and supportive and we work hard to ensure we maintain the standards set by them.”

Ken says the support of the local council has been an important factor with regard to Damar’s ability to grow and expand.

He says where other council’s around the country make expansion too difficult Rotorua District Council has been extremely supportive.

Other benefits of being Rotorua-based include access to labour, project costs being far more favourable and ultimately the cost of living is less and the standard of living and lifestyle is better.

“Rotorua is very central to all of our key customers, including Forestry and Road marking. We are only a few hours from Auckland with easy access to the main state highways, just under an hour from the Port of Tauranga and situated just across the road from the Regional Airport.

“There are many intangible savings and the time taken to build things is definitely a lot quicker than say in Auckland. It would have been far more expensive to have built this site in Auckland or Hamilton.”

Ken says Damar’s owners Scott and Bev Thompson are born and bred in Rotorua and this has also been a key factor in the business being based there.

“We are very supportive of the local community and proud to be major sponsors of the Rotorua Energy Events Centre.”

Damar has been noted as an organisation worth supporting. Prime Minister Helen Clark opened the new site, Jim Bolger has visited and the company has been placed in the Industry New Zealand Fast Forward Programme.