Low cost gives NZ boatyards boost

AUCKLAND, New Zealand (CNN) -- New Zealand is fast becoming one of the world's biggest centres for superyacht construction, with its low-cost high-tech designs.

In just two years the niche market has become a full-blown industry with the number of yachts constructed in New Zealand more than doubling.

An example of New Zealand's capabilities is Tiara. At 54 metres and over 400 tonnes, Tiara will be one of the world's biggest superyachts when it is completed in 2004.

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Superyacht consultant Godfrey Cray said people who order the boats are not basing their decisions purely on price.

"They want a high-quality fully custom item that works. There are only two or three yards in the world that have the technology and the facilities to actually create a boat of 180 feet with a single mast."

Alloy Yachts is the second largest manufacturer of superyachts in the world.

Alloy has gained a reputation for craftsmanship since launching its first vessel in 1985.

Located in Auckland also allows it to take advantage of some favourable economic factors.

Managing director Tony Hambrook said the competitive exchange rate was part of the key to success.

"Our labour rate must be around a third to half of what it is in Western Europe, and roughly half of what it is in the United States. We're fortunate that we have a highly-skilled labour force, we train apprentices, and the average age is just a little over 30.

"We believe our productivity is probably better than it is in Europe, coupled with the fact that most of the people here have an affinity to the ocean. They will be either sailors or they'll be out on the weekends fishing, and consequently I believe they have more of a passion in what they are doing."

The $15 million Victoria of Strathearn is a classic example of Alloy's craft.

The yard prides itself on its ability to build and assemble practically every component, from the luxurious design of the interiors, right down to the anchors themselves.

But there is still one key area where Alloy has to look for outside help. Marten Spars, also located in Auckland, lead the way in superyacht masts, cornering more than 30 percent of the world's market.

They have successfully applied carbon-fibre technology from the America's Cup to their designs. However, for the leisure sailor, it has been their revolutionary sail management system or "in-boom furling" that really sells.

Marten Spars managing director Paul MacDonald said they introduced it ten years ago for a superyacht at Alloy Yachts.

The design allows for a better sail shape, faster time getting the boat sailing and fewer crew members as there is less work.