Construction began a few months ago on Escea Fireplace Company’s new 6000sqm distribution warehouse in Mosgiel.
The building is situated on an L-shaped section of land between McGlashan St and Cemetery Rd.
Chief executive Nigel Bamford said the development would increase the company’s total square metres of operating space by about a third.
It would also allow it to increase production by a further 30% to 40%.
‘‘It’s going to make us more efficient.
‘‘It’s going to give us lots of room to grow, and it will be a nice, modern environment for our employees to work in.’’
The company, whose main manufacturing site is in Green Island, supplies across the New Zealand and Australian markets.
Mr Bamford estimated the total cost of developing the whole site – including building roads and earthworks – exceeded $10 million.
The whole site had been designed to be accessed through McGlashan St and it was expected the company would start moving in around March next year, he said.
Accessories the company sold alongside its main fireplaces, such as fascias and flue kits, would be manufactured there in small numbers.
Mr Bamford said it had also opened sales offices in the United States and Europe in the past six months, one each in Florida and Belgium.
Employees were demonstrating the latest models of its ‘‘holographic’’ electric fireplaces to dealers at present.
‘‘We’ve built display trailers and installed product in those trailers and fitted them out in a mobile showroom.
‘‘Our salespeople can drive to prospective dealers’ premises and showroom and show the store owner and store staff our new models to sign them up as a dealer.’’
It was logistically difficult to get those dealers all into one place and the distances involved were huge.
‘‘So we’ve chosen to take the product to them.
‘‘These show trailers allow us to get the dealers, and the architects and builders in these places, to actually have the opportunity to stand in front of it and realise just how realistic the hologram creates an electric fireplace.’’
While the company had traded in small amounts with distributors based there in the past, it intended to use its new electric range to break into those markets properly.
It planned to ‘‘significantly’’ increase its sales of electric models into the northern hemisphere in the coming years.
While the construction industries in New Zealand and Australia remained ‘‘quite constrained’’, Escea Fireplace Company was maintaining good momentum, partially because of growing sales for its wood and electric fireplaces, Mr Bamford said.
A large percentage of its products went into new homes or new apartments.
‘‘It’s only because we have diversified across multiple countries and multiple product lines that we’ve been able to still find sales and grow sales in a shrinking market.
‘‘Our strategy of market diversification through export and product diversification has really helped us weather what is quite difficult financial conditions right now in the market.’’
