An Auckland based food manufacturer was producing a wide range of nutritional snack bars for both the domestic market and the Australian supermarket industry.
The Client used LPG bottled gas to power their ovens with the bottles being delivered to their site every 2-3 days. Because of planned manufacturing growth, they were very concerned that their costs were going to rise significantly. They asked ERA to undertake a review and then present them with a range of= options for consideration by their management team.
Our initial review confirmed that there were limited opportunities to reduce the cost of the bottled gas. Our market intelligence and knowledge also indicated that the costs were about to increase; the exact situation that was of concern to our Client.
In searching for a practical long-term solution, we identified that it might be possible to link into an existing natural gas pipeline even though the nearest connection point was some 1.7 kilometres away. After presenting the analysis and discussing the alternative solution with the Client, they were very keen on pursuing this option.
Discussions were held with the proposed supplier, and they very quickly appreciated the opportunity to distribute gas to other customers in the area.
"As a result, the supplier agreed to lay the gas pipe to the Client’s factory gate at no charge, with the Client being responsible for final connection costs from there."