Manufacturing success story for the region
The sale of Timaru’s Clough Agriculture, trading as Duncan Ag, to Giltrap Engineering has the potential to deliver strong benefits to farmers and the wider community.
Like Duncan Ag, Otorohanga-based Giltrap Engineering is a proud family-owned business with a strong history in development and innovation in the agricultural manufacturing sector.
Giltrap has made a commitment to the region, not only purchasing the business but also the land and buildings in Timaru, and guaranteeing job security for Duncan Ag’s employees.
The two business are a great fit, both bringing strong brands and product lines that complement each other perfectly.
Both companies are strongly involved in exports, with very good growth opportunities in bringing the two companies together and achieving the synergies this delivers.
The most important thing, from the Clough Agriculture board’s perspective, was that current employment continue. When regional companies merge or are purchased often there are losses to the region. In this case, it will have a positive impact.
Giltrap is a company that is committed to growth and maintaining a strong business and employment in south Canterbury.
There is also potential for further growth in the region. Both companies have a long history of innovation and export development, which can only be positive for south Canterbury.
For dealers and farmers, it is business as usual, with benefits to be gained.
You will see a continuing presence and expansion of Duncan Ag, which is of benefit in terms of a wider range of equipment and, over time, improved equipment. As well as maintaining the service for parts and replacement components that has always been part of the local service.
In recent times, the agricultural manufacturing sector has been under pressure from imports. It’s great to see two innovative companies consolidating their business to strengthen New Zealand’s presence and maintain New Zealand ownership.
In the current climate, there are consolidation opportunities in the agricultural machinery sector and Giltrap is keen to grow its footprint in both New Zealand and Australia, as well as globally.
Together, the two businesses are stronger. The purchases enables the pooling of resources and talent and the ability to bring an exceptionally good product offering to dealers.
This is a success story for both Waikato and Canterbury, and Giltrap is committed to both regions.