The largest non-agricultural based manufacturing business in Southland is an aluminium smelter operated by New Zealand Aluminium Smelters (NZAS) at Tiwai Point near Bluff. NZAS produces more than a quarter of a million tonnes of aluminium each year. Most of the metal product is exported to Japan and other Asian countries, but fabrication and foil products are made for local consumption. The smelter’s first stage (a single reduction line) was commissioned in 1971, and by 1982 was equipped with three potlines. Continuous, competitively priced and substantial quantities of electricity, along with Bluffs deep-water harbour, and Invercargill’s established city infrastructure were the major reasons for location of the smelter.

Fast growing manufacturing areas in New Zealand involve wood products, equipment and machinery. There are already a number of manufacturers in these areas in Southland, from smaller specialist car builders to larger concrete producers. One of the challenges faced by some producers are the volumes demanded by international clients. Two strategies have been developed to overcome this problem, either focussing on smaller niche markets or forming ‘clusters’ of producers so that they have the necessary base to cope with larger orders.

Southland has much to offer a growing domestic and international market. There are opportunities to take advantage of locally sourced rich natural resources, such as oil, gas, minerals or timber and add value to them through manufacturing products locally before exporting. The majority of goods manufactured in Southland are exported, supplying a variety of markets.

The New Zealand government has and continues to actively seek out international trade agreements with advantages to New Zealand based exporters. Opportunities for Bio fuel production are also positive with a climate and soil analysis programme called Topoclimate making information readily available.