This is the evil foreign investment the left are against
The Herald reports:
Fisher & Paykel Appliances, the home-appliance maker acquired by China’s Haier in 2012, is seeking some 40 workers for research and development after opening a new design centre at its Auckland headquarters.
The company spent about $5.5 million on the new Auckland facility with another $1.5 million still to be invested, and is spending some $2.5 million to fit out its Dunedin R&D facility. F&P Appliances has hired 80 engineers and designers in the past 18 months. It is now one of Haier’s five global ‘centres of excellent’ for product development in the group.
Haier New Zealand Investment Holding, which holds 80 percent of F&P Appliances, invested $36.3 million on property, plant and equipment in the nine months ended Dec. 31, 2013, and $7.9 million between Aug. 29, 2012 to March 31, 2013, according financial statements lodged with the Companies Office. Its accounts show it had revenue of $777.1 million through the final nine months of 2013.
Haier New Zealand incurred research and development expenses of $17.9 million in the 2013 period, and $7.2 million in the 2012 reporting period. The other 20 percent of F&P Appliances is held by another Haier unit.
The Chinese company effectively rescued F&P Appliances in 2009 when it acquired a 20 percent stake as part of a capital raising that let the company refinance its debt. The local manufacturer got distribution into China as a result of the deal and the ability to further licence its technology.
And who was against this foreign investment which rescued F&P and has led to more jobs and more R&D? Well TVNZ reported:
The Government is coming under pressure to stop iconic Kiwi appliance maker Fisher and Paykel from falling into Chinese ownership.
Chinese company Haier last week launched a take-over bid for the company but opposition parties say it is the type of innovative company New Zealand cannot afford to lose, and is a further sign of a crisis looming in the country’s manufacturing sector.
“The Government cannot stand aside and watch New Zealand manufacturing ripped out from New Zealand ownership,” said Labour finance spokesperson David Cunliffe.
It is easy to bash foreign investment, especially when it is Chinese. Winston has done it for decades. Labour is joining in. But the reality is that overall foreign investment creates jobs, lifts income, and boosts research and development.
Presumably under Labour, they would have blocked the investment in F&P, which may have collapsed as a company, or at a minimum would not be boosting R&D – as you need investors to do that.