Business Central June 2023

10 | “Our products end up in other countries that their locomotives operate in, which at present is countries such as Australia, Finland, Turkey, Egypt and even Mongolia.” CEDA: Noske Rail REGIONAL DEVELOPMENT T T Rosa Watson HVAC on track in global rail markets The Noske Rail manufacturing facility is a global leader in producing air conditioning units for rail markets. HENSEL'S KF SERIES HENSEL has redefined Cable Junction Boxes to withstand natures elements. The KF Series are IP68 Rated and: • Made of polycarbonate & UV Stabilized • Low toxicity & Halogen free • Screwless entry with maximised internal workspace Choose Hensel for quality you can rely on, enquire at MARDAG. 0800 627 324 | info@mardag.co.nz The Noske Rail manufacturing facility in Palmerston North is continuing to be a global leader in producing air conditioning units for global rail markets. The facility has been in operation for decades, and designs and manufactures bespoke HVAC equipment for rail passenger car and locomotive builders that end up around the world. It was originally established in Palmerston North in 1993 as part of a localisation project for a major navy HVAC project. Given navy projects were few and far between in Australia and New Zealand, in 2002 the company entered the rail market in Australia, that had been dominated by one supplier for many years. “From there the company grew,” says general manager Martin Mallon. Over the following years it would come under new ownership several times, from New Zealand to German and then in 2016 the company was split into two – with one entity solely operating in the rail industry, while the other remained in the navy market. The rail business was sold to an Indian entity in 2016, and then in 2021 was purchased by Australian entity the KYR Group. The company continued to win various orders for passenger car and locomotive projects and since joining the KYR Group, they have secured “significant” export orders and the number of staff in Australia and New Zealand has grown from 32 to 58. “And we are still on a recruitment drive for more people. We can’t get enough people.” One such export contract is for a US-based global locomotive builder. “Our products end up in other countries that their locomotives operate in, which at present is countries such as Australia, Finland, Turkey, Egypt and even Mongolia. “One of the largest orders at present is for HVAC systems for passenger trains that operate in regional Victoria. The initial order for these came to the business in 2002 for 76 HVAC systems and now we have orders for over 430.” These are large air-conditioning units that weigh nearly 1200kg and each one takes around 400 production hours to build, Martin said. “We design and manufacture it here in Palmerston North, importing all the raw materials, we add our build and then we export the equipment and provide through life support to the customer by maintaining and repairing the equipment once in service”. After a certain number of years in operation the equipment then gets overhauled or upgraded with the latest technology available. “The after-market business is a big market. There are thousands or air conditioning units in operation on locomotives and passenger cars around Australia and they’re getting old.” He said the company was pursuing more work locally and previously had to fight hard to win a couple of projects here in New Zealand from offshore companies. Their units were not on the Auckland passenger rail fleet or the Wellington passenger rail fleet, however they did supply units for the TranzScenic tourist trains, and there was a significant new rail project happening in New Zealand that they were working on with an overseas locomotive builder. “Companies like ours should be supported in New Zealand,” says Martin. With a successful business model, they had remained strong through a number of challenging environments. “The success of our business is all about people. Most of our people are long-term employees.” The contribution to the local economy was also significant. A value assessment recently carried out showed annually that it contributed around $3m in salaries and wages and another $1m on local suppliers in the region.

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