Hellmann Announces Techtronic Industries Investment

Hellmann Worldwide Logistics (HWL) announced a $40m lease and development investment with Auckland Airport to establish a new 19,200-square-metre warehousing complex dedicated to multinational manufacturer Techtronic Industries (TTI).

The Green-Star complex is expected to deliver a new benchmark in efficiency, flexibility and functionality, said HWL New Zealand Managing Director Chris McCagney.

“This long-term agreement further cements HWL’s business relationship with TTI, which is a world leader in global brands such as MILWAUKEE, AEG and RYOBI power tools, accessories and hand tools; RYOBI and HOMELITE outdoor products; EMPIRE layout and measuring products; and HOOVER, VAX and DIRT DEVIL floor care products.

“This will be the first ambient warehousing complex in New Zealand to be fitted with the latest K48 sprinkler heads which allows roof height at 16.7 metres with racked storage up to 15.2 metres – considerably increasing storage density without installing in-rack sprinklers throughout the entire warehouse.”

As well as the green aspects of the facility, a key driver has been to fully consider wide supply trends within TTI in New Zealand and overseas.

“This has enabled us to build in flexibility and scale to adapt and grow as TTI’s requirements of tomorrow develop.

“For example, the complex will have no columns as well as enhanced floor specifications. This will allow for future investments in innovative robotic-based material handling and automation solutions to support TTI’s high-volume customer orders, high-volume unit output and high storage density.

“This new complex has also been designed in two separable portions divided by a speed-wall, further enabling TTI operations to be phased and scaled.”

TTI Australia and New Zealand Chief Financial Officer and Chief Operating Officer Grant Edhouse commented the development will be crucial to accommodating the business’ continually rapid expansion in New Zealand.

“We needed a new facility with a longer-term contract logistics arrangement to support our future growth,” said Edhouse.

“The extended height, capacity, operational efficiency and flexibility of the complex has been specifically developed to cater for TTI’s needs for a considerable period of time. By consolidating our operations into this new complex, we will be able to optimise and future proof our supply chain to the benefit of our retail partners and end users of our products.”

“This new complex is also a great example how you can create a really exciting form of architecture within a functional industry build, and it supports the desire of both HWL and TTI to lead the way in quality of facilities and workplace,” added Edhouse.

McCagney said the long-term agreement between HWL and TTI further enhances a long-standing business relationship between the two.

“HWL has been successfully providing TTI with contract logistics services in New Zealand since 2013. We are delighted to support TTI who are recognised worldwide for superior quality, outstanding performance, safety, productivity and compelling innovation – all traits that sit very well with the privately-owned Hellmann Family business which first took root 150 years ago.”

All TTI product groups are to exit HWL’s main complex then transition to the new complex from a secondary facility.

McCagney adds the new development will provide HWL with the opportunity to explore new growth opportunities at the new facility.

“We will continue to forge into industries where there is complexity, and we have the expertise as well as reputational and capability advantage.”