RIVIERA POWERS INTO EUROPE (7/8)
Written on the 7 September 2010
RIVIERA has doubled the production capacity of its Coomera facility as renewed demand and increased export sales flourish to the tune of $28.5 million.
The latest development continues the iconic Gold Coast company’s rise from financial wreck, with total debt levels now at less than $150 million.
Company CEO John Anderson, says Riviera could be out of receivership before Christmas. He says export markets have improved significantly and the new production line will cater for two vessels per week once fully operational.
“It’s starting to pick up mostly in the United States and the Americas, but there have been some very positive signs from our European dealers who over the last four to five weeks have been able to sell most of their inventory,” says Anderson.
“The European market has been very quiet for a number of years but now we need to start resupplying our dealers with product. We were selling one boat per week but over the last 15 months we have been consistently selling two boats per week and as a result the international inventory has become quite low.
“When boats begin rolling off this new production line we will be able to cater for this growth and as the market improves further we will implement further planned production increases.”
Improved manufacturing facilities have also allowed Riviera to rehire staff made redundant.
“We are now actively recruiting quality people to work with us on this new production line and have rehired several of our previous staff that we were forced to let go last year as the global financial crisis impacted the boating industry,” says Anderson.
The development comes just weeks after a record result from the Sydney International Boat Show (SIBS).
The luxury boat manufacturer sold 19 vessels over the five days of the show totalling more than $24.2 million.
Anderson says 40 new Riviera boats were sold between the Sanctuary Cove and Sydney shows and is a ‘tremendous result for the Riviera brand’.
“When the GFC really began affecting us – as it did all boat companies – we discussed the strength of the Riviera brand and never did we believe that would Riviera cease to exist as many people speculated,” he says.
“We don’t have any debts remaining to unsecured creditors; we are out of administration and plan to be out of receivership before the end of the year, subject to a few technicalities.
“This result supports our belief that superior design, technology and world class quality are the hallmarks of Riviera and these virtues have allowed us to emerge from the global financial crisis in a very convincing manner.”