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Managing Director Address

12:00AM, 23 Oct 2008 | ADDRESS

OPENING OF NEW DUNEDIN ENGINEERING FACILITY

Scott Technology's vision is to be "The Global Innovator in Automation".
Make no doubt about it, Scott Technology is a successful New Zealand
manufacturer and exporter.

As well as completing this magnificent facility, another key achievement in
the past year was the acquisition of Rocklabs, a world leader in sample
preparation equipment for the mining industry, which is an excellent addition
and complement to Scott's business, as a manufacturer, and more importantly,
in automation, where we see major growth opportunities ahead.  We purchased
Rocklabs from Dr. Ian Devereux.  We are very fortunate that Ian is staying on
with the company. Today the company has major design and manufacturing
facilities in Dunedin, Christchurch and Auckland, and we are well positioned
to achieve growth in 2009.

Global Innovator in Automation - We do this with our people.  Smart people
with experience, expertise and lots and lots of passion.

Global - We are certainly global.  We are now represented in over 90
countries and have our own people based around the globe.  In Europe we have
Scott Euro, based in Milan, Italy.  In America - Scott Dallas Office, in Asia
an office in China and we have recently re established an office in Sydney.
Additionally we are represented in another 20 countries through our agents as
part of the Rocklabs network.

We are here to reflect on what Scott has achieved, and to celebrate the
opening of this fantastic facility, which is a critical element in our
positioning for the future.  This building has been many years in the
planning and has, for a long time, been part of the hopes and aspirations of
the staff, particularly here in Dunedin.  Many of us have spent much time day
dreaming, visiting sites and trying to picture what could be.

The purchase of this site from Silver Fern Farms became possible, partly
because of the close working relationship we had formed with them over
several years.  We established that this 3.2 hectare block was a separate
title and would make an ideal development site for Scott.  The close
partnership was evident at an early stage when we agreed to share the cost to
undertake an engineering survey to determine the suitability to build on this
site.   The DCC supported us and helped with rates relief and the consent
process.  A turn key building project was agreed with Calder Stewart and
after many hours of assessing, and reassessing our requirements, and fitting
these into sketchy floor layouts, we ended up in a design and build
relationship with Calder Stewart.  The end result is this fantastic facility
and we have planned not only for the short term, but also for the longer
term, with sufficient room to easily double the size of our building on this
site.  It is planned that our meat processing activities and joint venture,
Robotic Technologies Ltd, will play a major part in Scott's future here in
Dunedin.

We are extremely pleased with the work that Calder Stewart, and the many sub
contractors, have put into achieving this result.  Of course every successful
project needs a project manager, and our own Graham Batts, along with Mark
Jackson and Glenn Holland, have risen to the occasion and put in an
extraordinary effort for Scott.

Sustainability is trendy these days - Business sustainability is important to
Scott.  We were also enthusiastic to incorporate environmental sustainability
in our building.  As far as possible we incorporated ideas and features to
ensure that as a modern building, it is energy and environmentally efficient.

Natural light is provided by skylights and we doubled the specification of
skylights.   Initial concerns in the workshop were we did not have adequate
lighting.  As you can see from the light available today, a natural lighting
is the best you can have, and without lighting assistance, the light levels
in the workshop exceed that which we have in our old building, with all the
lights and heaters on.

Energy Efficient Lighting was specified throughout the workshop and the
office block.  In most cases  the technology and energy efficient lights we
wanted to use were so new that our contractors had little, or no, experience
with them, but we forged ahead and insisted that we wanted to achieve an
energy efficient solution.  Our fluorescent lights and halogens in the
workshop are all highly efficient, and in some cases, use up to 50% less
energy than normal fluorescent lighting.

All windows are double glazed to preserve the warmth.

The walls and ceiling are fully insulated and this included double-skin
skylights to ensure that heat we wanted to retain was retained within the
building.

We have installed a diesel generator for emergency back up and to reduce the
peak loads on the electricity grid.  This has substantial savings for the
network and is reflected in the price we pay.

Highly efficient radiant gas heaters are to be installed in the workshop.
Throughout the office block we have utilised efficient inverter heat pump
technology, and our entire heating and ventilation scheme was reviewed,
assessed and recommended by specialist energy consultants.

The location of the building is positioned for sun, to utilise passive solar
heating. Our designers who work, with computers, have been located on the
eastern side to reduce the interference of direct sunlight.  We even have
Carbon Credits - If you look outside we have our precious trees on the bank
across from Kaikorai Stream, which provides us with our Carbon Credit
offset!!  We will be grassing the grounds and planting out the bank to
provide environmentally friendly grounds for all staff to enjoy.

Where there is change, there is opportunity -  Opportunity for those that can
see the potential and are bold enough to act.  Just like in many sports and
endeavours in life, you concentrate on the ultimate goal, and with patience
and skill, you manoeuvre yourself into a winning position.  I believe this
sums up where Scott is now, in a winning position.
We are now well positioned for the future, and for growth.  We have now this
new facility, which has been paid for out of cash reserves, and over the past
few years Scott has invested heavily and continuously in research and
development.  This research and development has been an investment in the
future and goes hand in hand with the investment in this building.  We have
survived a period of extremely volatile currency and past years where the New
Zealand dollar exchange rate with the US dollar has been at an all time high.

We have received our first commercial orders for automated boning room
systems for the meat industry through our joint venture company, Robotic
Technologies Ltd.  We see prospects in all markets improving, but we cannot
overlook, or ignore, the impact the current world financial crisis may bring.

We have a strong management team with a clear vision and way forward, and we
have at present a good forward work position, and are in final negotiation
with several key customers.

Scott is a fantastic company that is recognised on the world stage and we are
doing it all here from New Zealand.  This would not be possible without the
contribution from our stakeholders.  I believe all stakeholders are important
and many, if not all of you, are stakeholders in some way and I thank you
all.  I have been extremely fortunate to have been a part of Scott, and to
work with such great people as Graham Batts, Graeme Marsh and Stuart
McLauchlan.

It is entirely appropriate that Mr Graeme Marsh officially open this facility
and I have much pleasure in asking Mr Graeme Marsh to officially open this
wonderful new facility.

23 October 2008

Chris Hopkins
Managing Director