Oracle Team USA builder gets NZ Government R+D Grant

by Richard Gladwell/Sail-World.com on 23 Apr 2015 Core Builders Composites, the builder of Oracle Team USA's boats for the 2013 and 2010 America's Cup boats has received a grant from a Research and Development Fund operated by the New Zealand Government.

Earlier today the New Zealand Herald ran a story claiming the Warkworth based company had received a grant of $17.5million. However this figure would appear to be a misnomer in the published list of grants of over $40million to 40 New Zealand companies. A modest amount of research would have shown that all the companies in the grant list had a certificate for $17.5million - constructed from the maximum draw-down of $5million per year over three years plus 15% GST.

Core Builders Composites is believed to be one of the first New Zealand marine technology companies to receive such a grant from the R+D fund, known as the Callaghan Fund in memory of a top New Zealand technologist, Sir Paul Callaghan.

Introduced the the National Government, the fund replaced tax deductions for research and development and instead provides a partial degree of funding for agreed projects across a range of projects and technologies.

The incorrect NZ Herald story quickly hit the news headlines in New Zealand, prompting Core Builders Composites to issue a statement clarifying the amount of grant they had received.

Core Builders Composites revealed that the actual amount of the grant was $252,000.

As well as being well known for the construction of many of the one design AC45 wingsailed catamarans used in the 2011-2013 America's Cup World Series and Oracle Team USA's two AC72's and wingsails, Core Builders have a number of composite projects outside of the marine industry.

These include a lightweight shells for the Sunswift Solar car built in conjunction with the University of New South Wales; the roof of the Marsden Cross Interpretative Centre and a Mig 29 replica. The company is believed to be a front-runner for the construction of the Skypath project - a walkway to be strapped onto the side of the Auckland Harbour Bridge - assuming Resource Consent is obtained.

For more on Core Builders Composites see their website by clicking here

Director, Tim Symth told Sail-World this morning that the the company had enough composite work on its books to 'not need to bother about building yachts'.

Core Composite Builders' statement on the grant is as follows:

These Grants are to help Innovative New Zealand Companies Invest in Research & Development. The value of the Grant is capped at $5mil NZ +gst per year, but the actual amount that we receive is 20% of our Eligible R&D Spend -- : as defined here

To clear up a few misunderstandings -- we have not received $17.25mil NZ to date. This Grant started in 1 July 2014 and to date we have received just over $252,000NZ. Our forecast R&D claim is far less than the capped amount.

We received the Grant based on our track record of being an innovative composite manufacturing company. Our R&D activities have enabled us to establish a high profile as a bespoke composite manufacturer who can assist companies in NZ and overseas in development and problem solving. This in turn has enabled us to attract commercial and prototyping work from around the world.

As has been widely reported, we did have to go through a painful restructure at the end of the last America's Cup cycle. This is not uncommon in the Marine Industry where much of the work is project based. Subsequent to that we were able to regain a foothold in the market by diversifying into Architectural, Industrial products as well as finding new Export customers for our bespoke marine appendages. In this way we have rebuilt our work force. Since July 2014 we have added 26 members of staff.

New hires last year include two new apprentices who have joined our three existing full time apprentices in training through the NZ Marine ITO. Investment in the future of our industry.

We have had quite a few people ask how we are spending the Grant money. To be perfectly honest, that is proprietary. But in a global sense:
We are investing in high value, high tech manufacturing in New Zealand.

We are investing to improve our capabilities going forward to ensure that we can remain at the cutting edge through innovation and development.

We are investing to attract diverse prototyping projects in markets beyond marine and racing yachts to create a more sustainable business beyond this current America's Cup cycle.

We are investing in developing techniques and products that will enable other innovative New Zealand Companies with the uptake of composites and digital manufacturing by making these more cost effective options. Such innovative New Zealand projects include the Auckland SkyPath, which we have been fortunate enough to be involved with the design phase and we hope to be a part of the construction (along with other innovative NZ Composite Manufacturers) should it receive Resource Consent.

For more images of Core Builders Composites recent projects click here