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Scott Automation Opening Address

12:00AM, 29 Jul 2004 | ADDRESS

Scott Technology Limited has provided a copy of the Scott Automation Opening
Address being given this afternoon:


It is my pleasure to extend a warm welcome to everyone from near and far.  It
is good to have you with us to celebrate this significant event.

Today (the 29th of July, 2004) marks the official opening of Scott
Automation's new and refurbished Technology Centre here in Auckland (or more
specifically, here in Waitakere). This is a milestone that clearly marks the
completion of this phase of our site development programme however, it is
also a milestone that marks the beginning of the next phase of our business
development programme.


During its 90 year history, Scott Technology has grown from its modest
Dunedin roots to become a listed public company having design & manufacturing
facilities in Dunedin, Christchurch and Auckland and having offshore sales &
service facilities in Dallas Texas, Shanghai China and Sydney Australia.

Its business activity and experience has developed and grown during this
period and includes (among other things):
- General engineering
- Automotive engineering
- Munitions manufacture
- Appliance manufacture (under a license agreement with Whirlpool USA)
- Tool and die design and manufacture
- Special purpose machine design and manufacture (for a broad cross-section
of industries)
- Automated production system design and manufacture.

SCOTT TECNOLOGY (Christchurch - Appliance Production Systems)

The company's current core business is the production of sophisticated
manufacturing systems for the home appliance industry and Scott Technology's
Christchurch operation is dedicated to this global activity and to its
ongoing growth and development.

During the course of this year, several appliance production system have been
installed around the world in countries such as Australia, Brazil and the
United States of America for customers such as Electrolux, General Electric,
Mabe, Maytag and Whirlpool.  An equally numerous number of appliance
production systems are currently under construction or undergoing factory
testing for a number of customers and countries including (among others)
China and Mexico. This high level of activity is further supported by a high
level of positive enquiry originating from within both our traditional and
our developing markets. In response to this growing demand, our Christchurch
appliance division is currently increasing its resource in terms of designers
and skilled tradespeople.

SCOTT AUTOMATION (Dunedin - Automation for Industry)

To expand the company's business horizon (beyond the geographic & economic
diversity associated with our international appliance business) the company
established Scott Automation (a wholly owned subsidiary of Scott Technology)
in 2001 to develop new business opportunities having diverse industry appeal
by utilising, and further expanding, the company's acquired expertise,
knowledge and vast experience (especially that relating to process

Scott Automation has subsequently developed (and continues to develop)
leading edge robotic capability applicable to a broad variety of production
processes including (but not limited to) the development of revolutionary
automation within the meat processing industry.

The exciting development within the meat industry in particular has
significant global opportunity for the company prompting a major move in 2003
to establish a joint venture compony, Robotic Technologies Ltd, with leading
New Zealand meat processor, PPCS Ltd, to facilitate the development and
commercialisation of this potential.

Significant advancement has been made with the initial boning system operated
under seasonal production test conditions at PPCS's Silver stream plant to
achieve impressive performance results in terms of meeting expected yield,
speed and process reliability criteria. This system is expected to be
"production ready" in early 2004. In parallel to this, other meat processing
automation is being developed and are about to enter into field development

SCOTT AUTOMATION (Auckland - Packaging & Handling Systems)

The establishment of Scott Automation in Auckland in 2002 (via the
acquisition of CBS) is significant to the company's development and business
diversification, broadening its industry and skill base into package handling
and wine & beverages systems and providing a strong and committed presence
within the heart of New Zealand industry and an excellent platform from which
to service Australia and beyond.

Our Auckland division has "put in the hard yards" over the last 12 months and
is showing the benefit with increased opportunities and enquiries originating
from both Australia and New Zealand.  Several materials handling systems have
been constructed with installations occurring in both countries during the
year. A major "automated warehouse" system is currently under construction
and being installed here in New Zealand.

The New Zealand wine industry is experiencing phenomenal growth at this time
with large plantings coming on-stream and grape harvest tonnages increasing
markedly. Scott Automation's Auckland based Wine & Beverage Systems is well
placed to service this growing demand having conducted a review of its
operation and services in 2003 resulting in the establishment of a sales  and
service facility in Blenheim and a change to some of our wine and beverage
equipment agencies in order to meet our high quality expectations.


A key element of the company's growth and diversification strategy is to
maintain and develop group operational synergies allowing inter-divisional
workload sharing to maximise efficient utilisation of the group resource as a

Scott Automation's Auckland operation now complements this philosophy
increasing the group's overall resource to 11,000 square meters of first
class design and manufacturing facilities combined with the cumulative
experience of 250 skilled staff.


Doing that which is easy provides little challenge and usually produces
little reward. Scott's business is built upon achieving that which is
difficult & demanding to provide superior solutions within shorter schedules
at more competitive prices. Success in our business doesn't just happen -
(apart from the obvious skills) it requires, vision, passion, commitment and
a team effort. As Chief Executive, I look forward to working with Paul and
his team as we enter the next stage of Scott Automations Auckland business
development programme. What you see today forms a foundation for tomorrow -
it is not the end result.

Finally, to everyone who contributed to the success of this site development
(including many staff members) thank you for your extraordinary effort and
commitment. The task was not an easy one and it has not been without some
degree of difficulty and frustration (not to mention the weather). Thank you
for your contribution to provide this excellent facility.

To Scott Automation's staff who (on occasion) endured less-than-ideal
conditions during the course of the development programme, thank you for your
patience and understanding.