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North Sails Loft 57 Podcast

Sensation Singapore Bound

by Jeni Bone on 21 Jul 2008
The Carrington facility was deemed to small for Sensation’s ambitions for the future. MIAA
Auckland superyacht builder, Sensation Yachts has sold its Australian shipyard at Carrington, Newcastle to Azzura Marine to focus on developing a $500 million state-of-the-art facility in Singapore.

Ivan Erceg, Managing Director and owner, said the Newcastle site was too small for roboticised production.

'We have done very well,' said Erceg. 'We made money, no jobs were lost. Could the Australian facility have been converted to be more efficient? No. Old and new technology don't mix. It would be like trying to build aircraft robotically in a cowshed.'

The role of Sensation's New Zealand operation would probably change from boatbuilding to 'parts supply', according to Erceg.

The workforce at the ageing shipyard on Henderson Creek would be boosted to 90, but could move from the complex in the next two to three years. Some staff would move to Singapore.

Construction will commence in the fourth quarter of this year, according to Erceg, who adds that full operations will begin during 2009, with four regions the main targets for the company: Europe, Asia, Middle East and the US.

'This production capacity will make Sensation the single largest global manufacturer.'

Erceg has sought international investors. 'The plan is underway in earnest. We've spent $3 million on the next phase of Sensation. It's just the beginning.'

Established in Auckland, New Zealand in 1978, Sensation Yachts is one of the world’s top 10 manufacturers of luxury yachts.

The $100 million 89.9m superyacht Athena and the 56.6m superyacht Lady Christine were two of Sensation's recent refurbishment contracts in Newcastle.



Having spent several years in development, Sensation has pioneered a resin-infusion technology to successfully build the world's first resin infused vessel over 150', dramatically-reducing the amount of time and materials needed in the process.

Sensation also has a long history of producing yachts in alloy and steel which makes the company one of the most flexible builders.

Also in the news recently, legal action against Sensation from former managing director, Paul Sills to have the company liquidated to recover $89,000 he said was owed, and 10 other cases are still pending against Sensation, all but one involving liquidation.

Erceg said nearly all of the cases had been settled and the others were being negotiated, with money in accounts ready for payment.

He said all cases had arisen when he had stepped down from hands-on management when he admits he had 'taken his eye off the ball' in day-to-day company matters.

'Sensation is now in calmer waters and heading in the right direction.'

More at www.sensation.co.nz

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