44 | MANUFACTURING South Fence Machinery T T Richard Loader Business purchase a leap of faith Special Steels & Metals Limited www.ssm.co.nz SUPPLYING FROM STOCK, PREMIUM SPECIAL STEELS & METALS TO NZ ENGINEERS & MANUFACTURERS Proud to be associated with SOUTH FENCE MACHINERY LTD and their continuing international success. “It really needed to be carried on by people within the business. We had been in the business for a long time, and we knew what the business was about and what it meant.....” T T to page 46 To understand the rich story behind South Fence Machinery and where it fits in New Zealand’s history, is to appreciate the passion that Ben Byers and Marty Neill had for the iconic business when they put their hands up to buy it in the challenging period following the Global Financial Crisis (GFC). Located in Christchurch, South Fence Machinery is the world leader in designing and building the complex machinery that fabricates a broad range of fencing wire. Any fence wire that you see anywhere in the world is highly likely to have originated from a machine built by South Fence. The company’s origins go back to 1932 and a small business called New Zealand Fencing Gate Works, which was founded by William Ullrich, and sold to his 19-year-old nephew Fred in 1936. Always the innovator, Fred became the driver behind the Hurricane brand of fencing, building production plants all around New Zealand, and selling Hurricane fence wire products throughout Australasia, Papua New Guinea, and United Kingdom. To support the wire making operation, Fred imported older wire making machines that were largely past their use-by-date, reengineered them and either used them in his production plants or returned them overseas, thus developing machine making IP that would become the hallmark of the business. Early on, Fred purchased plans for a machine, enabling the company to engineer a bigger and better type of machine to fabricate wire products more efficiently. A new engineering division was set up to manufacture the machines, and the company’s international reputation grew. In the early to mid 2000s the wire products manufacturing division was sold, and the engineering division became South Fence Machinery Ltd. This enabled the company to concentrate all its resources on the design and manufacture of machinery for the wire industry worldwide, and supply of spare parts. South Fence Machinery continued as a family owned and operated business, with Fred’s son Peter joining the business, followed by third generation Jeremy. Supplying 80% of the world’s wire making machines, when the GFC hit in 2009, international orders for new machines plummeted, and by 2010 South Fence Machinery went from a team of fifty to about twenty. By this time the business was being managed by Peter and Jeremy and due to other business commitments, the decision was made to sell. Ben and Marty had both been working in the business for long periods of time and knew its operations and customers very well. Ben says the IP side of the business and deep institutional business knowledge made it very difficult for an outsider to walk in and take the business over successfully. “It really needed to be carried on by people within the business. We had been in the business for a long time, and we knew what the business was about, and what it meant. “We knew a lot about the family history and the people who had come before us, and I think in some respects we felt a responsibility to steer the ship as temporary guardians until the next people came along. So, in 2012 we purchased South Fence Machinery. “We rented the building off the Ullrich family, bought the IP and machinery and took on ten staff. “It was a tough call. We didn’t have any machine sales going forward, but we were producing spare parts to service the many machines we have throughout the world. We were also doing a lot of local engineering work around Christchurch to keep the business going for a year or two after the GFC credit crunch. “Peter and Jeremy Ullrich and our bank were also very supportive of us, but it was a very scary time for a while. To have walked away from it and see the business collapse would have been a shame. “I think Marty and I both felt responsible to get stuck in and have a crack, and it has turned out very well.” Ben and Marty put a lot of effort into ensuring the world knew that South Fence Machinery had survived the GFC, and that its doors were open for business. “This company is built on reputation, and we always stand behind what we do, always take responsibility, and back our customers up,” Ben says. “Our machine brands are very well known, and a turning point came when we were approached by someone starting a new business in Australia who needed a specific type of wire making machine. “On a handshake deal we designed and built that machine. Very quickly after that, another order came, and then another and that’s how we’ve grown — with a reputation for ensuring the customer is getting what they need, and we can fix any problems very quickly, which is what we’re very good at.”
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