Jump to-
- What’s Been Happening in our MAKE│NZ Community
- Future Events
- Members Supporting Members
- News From The World of Manufacturing
- Other News of Interest to Manufacturers
- Fun Facts
What’s Been Happening in our MAKE│NZ Community
The 4th New Zealand Manufacturing Industry Conference!
At the Auckland Showgrounds, to kick off EMEX 2026, May 26th we’ll be hosting a full day conference. We’ll be running through a rich programme of case studies, reviews, and practical insights, delving into AI, Industry 4.0 integration, robotics and human‑robot collaboration, future‑ready skills, and workforce upskilling. Complementing this are sessions on growing manufacturing start‑ups, preparing investors and owners for new opportunities, and navigating succession—whether passing the business to the next generation, merging for scale, or aligning with international buyers.
Over the next few weeks we’ll be sharing some of the details of each talk, whos presenting, and what you can expect.
Tickets are on sale from today until the 19th of May, and as a special treat we’ll be offering 10% off both ticket types (MAKE│NZ Community members and those who aren’t) from now until the 24th of April!
You can find the programme, special discounts, and more HERE
Future Events
• Our next Fireside Chat on May 11 will be showcasing the PV (photo voltaic) installation on the roof of Hamilton Jet’s new factory building. We’ll hear from Steve Lockhart, Manufacturing Engineering Manager at Hamilton Jet, and Andy Wells, MD at Sunergy Solar, who worked with Hamilton Jet on the project.
If you haven’t received an invitation for this event (yet), it’s probably because you are not a member of MAKE│NZ. To join, or enquire about becoming a member, please contact Sabine at sabine@makenz.org .
Members Supporting Members
• Here are the results of our mini survey from last week:
| Question | Average response (1-5 of impact-degree) |
| We are already experiencing a rise in the cost of our inputs and/or shipping costs for our finished products | 3 |
| We have strong indications from our suppliers that such rises in cost will occur in the future | 4 |
| We have to absorb these rises in costs and will be unable to raise our prices (enough) to protect our margins | 2 |
| Separate from rises in costs, we are already experiencing disruptions in the supply of inputs that are essential for our production | 1 |
| We have strong indications from our suppliers that such disruptions will occur in the future | 2 |
In terms of the Open Question, responses showed that apart from some early indications that the supply of certain plastics may become restricted, concerns are mostly about price increases, in some cases seen as unjustified and opportunistic. All in all, it appears that to date manufacturers are not severely impacted in their operations – yet(!)
News From The World of Manufacturing
•Travelling through Germany, one cannot help but notice the high prevalence of photovoltaic (PV) solar panels. They are on the roofs and balconies of residential buildings, on commercial buildings and increasingly also occupying fields used for agriculture in the past.
New Zealand isn’t quite there yet. Electricity generation from Solar PV has risen steeply from 19 GWh in 2014 to 595 GWh in 2024, the latter contributing just under 1.4% of total electricity generation in 2024. The equivalent number for Germany for 2024 is 14.5%, rising to 16.1% in 2025.
Thus, there is certainly scope for growth, including for large industrial buildings.
One company that has recently made a partial move to solar PV is Hamilton Jet on the roof of their new factory building. They went for a flat-panel arrangement, as the more energy-efficient tilt-installation would have resulted in roof loads too high for the existing roof design.
Hamilton Jet also evaluated a solar PV plus battery option but found that to be not cost effective. The design and size of the installation is based on meeting factory needs, rather than achieving oversupplies that can be fed back into the grid. Initial operational experience shows that the solar PV provides it biggest benefit during winter, when the price of electricity from the grid reaches its seasonal peak.Hamilton Jet evaluated funding the installation through a Green Loan from their commercial bank at a 3.4% interest rate but found that to be just marginally cash-positive. The company decided to fund the investment out of its reserves.
There are a lot of numbers and financial data to be considered when opting for a solar PV installation. If you are interested in getting a lot more detail on the Hamilton Jet example, come and join us for our Fireside Chat on May 11!
The Manufacturing and Engineering Industry Skills Board are keen to engage with industry and providers to ensure the qualifications continue to meet current and future workforce needs.
To do this they’ve designed a survey to get structured feedback on how the qualifications are currently working and where improvements are needed- This is your chance to share your thoughts and help to improve the future structure, content, and delivery of Mechanical Engineering qualifications.
The survey closes this week so make sure to get in quick and share your thoughts – you can find it HERE
Other news of interest to manufacturers
•A couple of weeks ago we reported from Europe that the ‘fuel crisis’ was all about price, but – unlike in New Zealand and some Asian countries – not about supply.
That is now changing, with increasing concerns about the supply of jet fuel coming to the fore in Europe, too. The head of the German Airport Association (ADV), Ralph Beisel, was quoted as saying that “Jet fuel supplies in Europe are coming under increasing pressure … The key risk is the way refinery and production capacities are distributed, with about half the imports of jet fuel coming from the gulf region.”
And the International Energy Agency (IEA), in its latest report, points out that “As European markets approach the peak demand season, the loss of Middle East imports presents a severe logistical challenge. Weekly data for the Amsterdam Rotterdam Antwerp (ARA) area show that inventories plunged to the bottom of the five-year range in early April, having been above the five-year range in early February. The ARA is key to supplying jet fuel to a large part of Northwest European markets via pipelines and barge traffic on the Rhine.”
•The current jet fuel crisis is but an extreme manifestation of a long-term squeeze on the supply of diesel and kerosine (jet fuel) – see also below (Fun Facts) why the two are usually mentioned together:
Numbers for 2024 – 2026 are estimates/projections. The obvious historical ‘supply dips’ happened during the GFC and the COVID-19 pandemic. The next one we’re heading into right now, with a rate of decline almost as steep as during the COVID-19 pandemic.
•The ADV may not have crude oil supplies as such as its main concern, but the IEA begs to differ: “Global oil supply plummeted by 10.1 mb/d to 97 mb/d in March, with continued attacks on energy infrastructure in the Middle East and ongoing restrictions to tanker movements through the Strait of Hormuz leading to the largest disruption in history. OPEC+ production fell 9.4 mb/d m-o-m to 42.4 mb/d while non-OPEC+ supply declined 770 kb/d m-o-m to 54.7 mb/d, as lower Qatari output offset gains in Brazil and the United States.”
However, crude oil and by-product supplies from the Gulf Region continue to flow, albeit at a much-reduced rate:
Exports continue to flow from Saudi Arabia and the UAE, both of which have pipelines available that bypass the Strait of Hormuz, and Iran, which has allowed free passage for tankers carrying its exports. The latter will be severely constrained now that the US has decided to curtail Iranian oil exports to the best of its ability:
•As supplies from the Gulf Region remain constrained, other producers step up their supply – none more than the USA:
A further analysis, courtesy of What’s Going On With Shipping, shows that most of these empty VLCCs (Very Large Crude Carrier) are heading to the US from Asia, doubling their turn-around time compared to transporting oil from the Gulf Region – which means that twice as many ships will be required to deliver the same amount of crude oil as from the Gulf Region.
The other problem with that is that the US is already close to its 6m bpd (barrels-per-day) theoretical upper limit for exports, with an expected peak of 5.2m bpd in April. A VLCC can 2m barrels of oil. So even if 3 VLCCs could be loaded per day – and real-world logistics mean that is unlikely to happen – it will take many days for the US ports to load all the tankers heading their way.
Fun Facts (some of them not so funny)
•Crude oil, straight from the ground, is a complex mixture of hundreds of different hydrocarbons, ranging from very light gases to extremely heavy, tar-like substances. Its real value is unlocked in an oil refinery, where the primary process is fractional distillation. This process separates the crude oil into useful “fractions” or “cuts” based on their different boiling points. Kerosene and diesel are two critical middle distillate fractions produced this way.
The diagram below illustrates the flow of an Atmospheric Distillation Unit (CDU), the first major step in refining:
The process described in the diagram is the foundation for all middle distillate production. Here’s a breakdown of the steps:
1. Pretreatment and Heating
The crude oil is first “desalted” (washed with water and heated to remove salts) and then passed through a series of heat exchangers. Finally, it enters a large furnace, where it is superheated to approximately 360°C, vaporizing most of the hydrocarbon mixture.
2. The Atmospheric Distillation Column
The resulting vapor and unvaporized liquid are injected near the bottom of the atmospheric distillation column. This tall, vertical tower is filled with fractionating trays or packing, designed to facilitate contact between the rising vapor and the descending liquid.
As the vapor travels up the column, it cools. Hydrocarbons with high boiling points condense and turn into liquids at lower trays, while lighter hydrocarbons continue to rise until they reach trays with a temperature that matches their boiling point, where they condense. This process separates the mixture into distinct “fractions.”
A portion of the liquid collected at the top is returned to the column as overhead reflux. This helps precisely control the temperature profile inside the column, which determines the separation points (or “cuts”) of the different products.
3. Production of Kerosene and Diesel
The middle sections of the column are where middle distillates like kerosene and diesel are drawn off:
Kerosene/Jet Fuel Production: This fraction, often called “raw kerosene” or “straight-run kerosene,” is typically drawn from an upper-middle tray, which might be at a temperature of around 150°C to 270°C. As shown in the diagram, this cut contains hydrocarbon chains typically between 10 and 16 carbon atoms (C₁₀-C₁₆). This straight-run kerosene is the base for Jet A-1 fuel, though it must usually be further processed to remove impurities like sulphur.
Diesel/Gas Oil Production: The “raw diesel” fraction (also known as “atmospheric gas oil”) is drawn from a lower tray, typically at a temperature of around 250°C to 350°C. As the diagram shows, this cut contains heavier hydrocarbon chains typically between 16 and 20 carbon atoms (C₁₆-C₂₀). It is called a Middle Dist distillate because its boiling range is between the light products (like gasoline) and the heavy residual fraction.
4. Post-Distillation: Meeting Market Standards
Hydrotreating: Both raw kerosene and raw diesel are typically sent to a hydrotreater, where they react with hydrogen under high pressure and temperature in the presence of a catalyst. This process is essential for removing sulfur (producing low-sulfur or ultra-low sulfur diesel and jet fuel).
Aviation Specs: Jet fuel has exceptionally strict requirements for its freezing point, flash point, and stability. While “straight-run” kerosene is often close to meeting these specs, it must be carefully tested and blended, sometimes with specialized additives, before it can be certified as “Jet A-1.”
Leave a Reply
You must be logged in to post a comment.