Waikato Innovation Park Contributed Over $100m to Region
Waikato Innovation Park Contributed More than $100m to Region Over Past 10 Years
According to a 10 year economic impact report, the Waikato Innovation Park has brought $16M of establishment funding into the region and employee-related benefits from those working at the Park have contributed more than $100M to the regional economy.
The report, carried out by the Institute for Business Research at the Waikato Management School, outlines the Park’s direct and indirect contributions to Waikato’s economy since its establishment in 2002 through to 2012.
In addition to quantifying the Park’s decade of economic contributions, the report estimates future contributions. One of the most significant is from its milk powder dryer which was launched in 2012 to help food companies with new product development. Within the next three years the report estimates the dryer will contribute an additional $63M in milk powder exports to the region.
The report also forecasts that the Park’s operating revenue is set to increase from $4.027M in 2012 to $5M by 2015. Assets are projected to nearly double to $61.4M by 2015.
Current and projected employee benefits, which have been based on an average remuneration package of $100,000 and a multiplier of 2.4, are forecast to contribute a further $20M over the next three years. Employee numbers are also expected to nearly double to 800.
Led by Waikato
Management School Professor Frank Scrimgeour, the report
builds upon an economic impact study conducted in 2007 which
analysed the Park’s first five years of operation.
Professor Scrimgeour said the report confirms that the Park’s annual operating revenue has improved consistently over the past 10 years.
“Consequently this is improving the Park’s future economic viability and is leading to an improved equity situation, improved asset values and the potential to expand with new buildings, tenancies and initiatives like the new milk powder spray dryer.”
Waikato Innovation Park chief executive Stuart Gordon said the Park had grown from an idea with no staff and no physical assets to an economic entity with a balance sheet of total non-current assets of $22.6M in 2012.
“The core facilities building was completed in two stages over 2003 and 2004 and the Tetra Pak building was completed in 2009. Today the Park hosts around 54 companies employing 420 people – and there is a waiting list of tenants who would like to be based here. We’re planning for the next stages of development and the next five years will be an exciting time of sustainable growth.”
The Park’s shareholders include Hamilton City Council and The Katolyst Group. It was established in 2002 with financial contributions from Hamilton City Council and the Government’s former Major Regional Initiative scheme.
Mr Gordon recently presented the economic impact report to Hamilton City Council executives, councillors and Mayor Julie Hardaker.
Key Events in Park Corporate History
· Innovation Waikato Ltd
– established August 2001
· Dairy SolutioNZ (NZ) Ltd – established November 2009
· Beef SolutioNZ (NZ) Ltd – established October 2009
· NZ Food Innovation (Waikato) Ltd – established August 2010
· Waikato Innovation Park Ltd – established June 2012
Changes in shareholding:
· The Katolyst Group is the
founding shareholder - 2001
· Hamilton City Council takes ownership of 247 shares – 2009
Major establishment funding received:
Hamilton City Council grant $2M, March
· MED Grant, $2M, to: construct a core facilities building; establish and operate a technology commercialisation office; and establish and operate an incubator for technology businesses, December 2002
· WEL Energy Trust Grant, $2M to: undertake the development of Stage 1 of Waikato Innovation Park, June 2003
· Industry NZ/MRI Grant, $4M (split evenly between the following), December 2008:
o towards the cost of construction of the Tetra Pak building
o to support the off-shore business development activity of IWL
o $2.4 million of equity from HCC in support of the TetraPak build
o $3.95M grant from MED to support the cost of construction of the spray dryer.
Date facilities constructed and commenced
1. Core Facilities Building Stage 1 - Construction completed 2003
2. Core Facilities Building Stage 2 - Construction completed 2004
3. TetraPak Building - Construction completed 2009
4. NZFIW Spray Dryer Facility – Construction completed May 2012