Hamilton manufacturer rml (NZ) Ltd is proving that its machinery and equipment can more than foot it on the world stage, selling packaging, materials handling and end of line automation solutions to some of the largest companies in the world.
Established in 1980, rml honed its skills in the domestic market, in particular servicing the manufacturing needs of New Zealand’s world class agricultural sector. Today it specialises in erecting, packing, wrapping and closing machines, says Managing Director Larry Greene.
“We take pride in developing quality machinery and improving our clients’ bottom line through manufacturing automation systems that increase efficiencies, minimise down time, eliminate repetitive and costly operations and improve plant safety.”
A large part of rml’s business is manufacturing erectors – machinery used to erect trays, boxes and cartons. The other major focus is case packers, machines that not only erect the box, tray or carton, but also put a product into it, ranging from cheese to wine bottles. The business is very high tech. It has 45 staff including teams of specialists skilled in design engineering, manufacturing and automation. All research and development is completed in-house.
“Our key competitive advantage is that we can tailor make solutions. We don’t say to the customer here’s the machine, here’s what you get. We’ll say 90 per cent of this is a standard machine, but if you want us to customise the last 10 per cent we’re happy to do that.”
rml started exporting seriously in 2002, opening an office in Australia, headed by Peter Botting who was charged with developing the market. The aim is to grow rml to $20 million in annual sales and Mr Greene says the only way to do that is to look to bigger markets than New Zealand.
Although rml knows its design and manufacturing skills are world class, it’s been a long process changing the market perception that New Zealand manufactured machinery cannot be equivalent to traditional European and US suppliers. But Mr Greene says that’s starting to change.
“It’s taken us about four years to get to $2 million annual exports, but the momentum is really building now and who knows where we could be within another two to three years thanks to Peter Botting.”
rml is also expanding into other export markets, including Europe, where it’s appointed representatives in Belgium and the UK, and where it expects to grow annual sales to $2 million over the next two years. It’s also exploring the US market, but Mr Greene says it’s approaching that market very cautiously, preferring to take it slowly and get it right.
rml’s strategy in entering overseas markets is to create awareness of its skill at custom designing and manufacturing machinery for packing and end of line automation solutions, using reference sites to build credibility. It’s a strategy he says is proving very successful, particularly as its client list gets more and more impressive.
“The reference sites are enabling our expansion into new target companies, for example Coles Myer, Australia’s largest retailer.”
He says rml’s operations, credibility and reputation are growing significantly as it extends into a wide range of international markets where it’s supporting some big multinationals, including Nestle, the world’s biggest food and beverage company.
“With New Zealand Trade and Enterprise’s (NZTE) help we exhibited at a trade show in Melbourne in late 2002. Nestle came and looked and said they really liked the quality engineering of the machine and ordered two. Since then we’ve manufactured eight machines for Nestle. They are a massive company and the credibility that’s given us everywhere has been incredible.”
In 2005 Larry Greene bought out his partner and Peter Botting returned to New Zealand and became the other major shareholder with some shares also held by company employees and outside directors. That marked a major change in the way rml runs its business.
“We introduced the rml formula for success which is all about making sure that we have the right people on board, and giving them the environment and authority to not only make the organisation the best it can be, but also encouraging them to be the best they’re capable of. It’s made a real difference. Our strength is our people – we have a bunch of outstanding guys that can do anything.” Mt Greene advises that exporting isn’t for companies that want instant success.
“Our aim has been to plan in advance and to spend whatever it takes over how ever long is needed. There have been times when we’ve wondered if we would ever succeed; it’s taken a lot of time and money to develop our export business and we are grateful to NZTE for their ongoing support, as we are now achieving good results and there’s a real chance for us to be a $20 million company.”
Image: The rml workshop.
Contact: Larry GreeneManaging DirectorRML (NZ) LtdPhone: +64 7 849 3215Email: lgreene@rmlautomation.co.nzWebsite: www.rmlautomation.com
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