Summary

HISTORY OF THE ELECTRONICS INDUSTRY IN WAIHI

Small Beginnings
The town of Waihi was founded on the industry of gold mining in the latter part of the last century. The original tiny settlement quickly grew and prospered, out-shining many of its neighbouring townships.

However, in the early 1950s it was thought uneconomical by the mining companies to continue their operations, maintenance was stopped, machinery allowed to run down and by 1952 the world famous gold mines of Waihi came to a close. Many people expected the township to suffer the usual ignominous fate of so many other defunct gold mining towns and become yet another ‘ghost town’. This was not to be the case with Waihi, however. Founded upon a pioneering spirit as deep as any other community in New Zealand, Waihi was quickly to be seen rising phoenix-like from the ashes of her historic past. Waihi, a township founded upon gold, that precious metal inspiration to men’s dreams from time immemorial, was again to focus its attention upon a new dream-inspiring industry. The as then, new and exciting industry of electronics.

In 1932 a local boy recently returned from Auckland and just qualified with his Radio Serviceman’s Certificate, opened in lower Seddon Street a radio sales and repair shop. This young man was Keith Marsden Wrigley, eldest son of Mr J.M. Wrigley, reporter and writer on the staff of the ‘Waihi Telegraph’. His knowledge of electricity was in the main gained from the Waihi School of Mines and he later obtained his technical knowledge of radio through correspondence schools.

At that stage, of course, radio was still new and the radio trade in its infancy. In fact there were only a handful of radios in Waihi, many made by enthusiastic amateurs. While it was recognised that radio had a tremendous future, none realised the rapid advancement that was to occur in the immediate years ahead.

Initial Growth
With the commencement of even this small quantity of radios, space became really short and it was found necessary to shift to new premises. A large lean-to extension was built onto the back of these premises by Keith and his staff and while it was still being constructed a borough councillor called in and asked if they had a building permit. This was rather a bombshell as no one had any idea such a thing was even required. The building was duly completed nevertheless, under a benevolent smile from the council. One big advantage of the new site was the laying on of compressed air over the back fence from N.F. Morton’s garage which at that time was located in Moresby Avenue to the rear of the Waihi Hardware Company’s premises.

Keith Wrigley opened his little Radio Service shop with a capital of 52 pounds, a minimum of stock, one mantel radio and a handful of radio parts. He had a test meter which he had built himself and a valve tester which he had bought second-hand in Auckland. In typical ‘do it yourself’ pioneering fashion Keith had also painted the shop inside and out, written the signs and built counters, benches and shelves. Despite the looming depression business prospered and by the end of 1933 Keith had a staff of two working for him.

At about this time Keith made the decision that he could make radios cheaper than he could buy them. An initial production run of twelve was made. Both money and plant were still short however and bare steel chassis were bought with only the large holes punched. The balance of the holes were drilled by hand and the chassis finally painted with a home-made spray gun. The air for the gun was supplied by a hand-operated car pump. Having thus commenced manufacture, Keith would load up his car and head off for the surrounding districts to sell off the latest batch of radios. Now that extra room was available it was decided to manufacture such components as radio frequency coils and transformers, which meant a further increase in staff and the building of winding machines. These machines were designed and built after work, very often into the early hours of the morning by Ernie Hands. Keith’s enthusiasm was infectious and was not only felt by his staff who worked long hours when overtime payment was unheard of, but also felt by others who allowed their lathes and machinery to be used to make many of the original machines used by Akrad. Akrad, as the firm was known, was an abbreviation of Auckland Radio and was used originally as a simple and easy to remember trademark or brand name for radio components. Radio brand names used in these early years were Futura, Luxor and Everest.


World War Two
The pattern set in these formative years was largely followed up to the beginning of the war, there being two more shifts, the first to the premises in Rosemont Road next door to E.A. Clark’s pharmacy and the next to a site in upper Seddon Street. Staff increased in this period to nearly fifty and further building extensions were made. Radios and components were being sold all over the North Island, although most of the business was done in the Auckland area. Other lines developed with the same success during this period were battery chargers, poker-work machines and electric fences. The first electric fence which was developed and operated as a ‘trial horse’ electrocuted a farmer’s dog, which meant it had to be quickly recalled for further development.

Further Expansions
A new era for Akrad had now begun. During the war Keith Wrigley had become closely associated with George A. Wooller, senior project officer to the Controller of Radio Production. George Wooller had previously been production manager at Radio Ltd, Auckland, and had been seconded to this position for the duration of the war. This association led to George Wooller forming G.A. Wooller and Co., distributing company for Akrad manufactured products and this in turn had a profound effect on the post war growth of Akrad.

Under Keith Wrigley’s will, a company was formed under the direction of the Public Trustee, G.A. Wooller, W. Leitch and W. Meiklejohn. At this stage it was in considerable financial difficulties through having to meet death duties and income tax. As the Public Trustee had no knowledge of radio manufacturing, they called on George Wooller and Mr Moore Haszard to manage Akrad through this difficult period until the appointment of T.J.F. Spencer in February 1947. On April 1 of that year the business was sold to shareholders and formed into a limited liability company - Akrad Radio Corp. Ltd.- with a capital of 30,000 pounds. This resulted in its financial affairs being put on a proper footing and George Wooller was now able to devote his main efforts to the selling side while Tom Spencer proved an efficient manager.

Although radio production remained Akrad’s principal interest, the company also utilised its machine shop for the production of other lines. Tricycle production, which was begun in 1946, reached its peak in 1947 when three quarters of the staff were engaged on it.

A number of prototype motor scooters were also produced by the company and one of them was ridden by Mr T. Spencer and Mr Ernie Hands on an extended proving trial from Waihi through Rotorua, Taupo, Napier, Wellington and back to Waihi via Palmerston North, Wanganui and New Plymouth. The only imported components used were the tyres, motor, chains, and of course the steel.

The company also made a trial production run of rotary lawnmowers, which were the first of their type manufactured in New Zealand. A trial run of kitset refrigerators imported from Australia and assembled here were also tried at about the same time, but the directors of the day felt that neither the motor scooter, fridges nor the lawnmowers were in line with the company’s main objectives within the field of radio. So although they were interested in finding ways of expanding, these ideas were shelved. Rapid strides were being made with the introduction of a complete range of domestic radios from portables to large cabinet models and a chain of dealers to sell the products was also being steadily built up by G. A. Wooller and Co. Ltd., who still marketed all Akrad’s products.

New Beginnings
In 1949 television’s rapid world-wide growth convinced the directors that it would be best for Akrad to associate itself with a major overseas organisation to prepare for its introduction to New Zealand. Subsequently an approach was made to PYE Ltd of Cambridge, England, and its chairman, Mr C.O. Stanley, visited New Zealand for negotiations.

As a result PYE (N.Z.) Ltd was set up in 1951 with PYE Ltd of England having a substantial shareholding. Mr Wooller became chairman and managing director of the new company. Also on the board were Mr Spencer and Mr A.M.Cooper, managing director of Green and Cooper Ltd of Wellington, which had been PYE telecommunications agent in New Zealand from the time it installed the first radio-telephones in Auckland in 1947.

PYE (N.Z.) Ltd acquired a controlling interest in Akrad and the Waihi factory embarked on the production of PYE’s domestic radios as well as the already established brands Pacific, Regent and Five Star, which continued to be marketed by G.A. Wooller and Co. Ltd.

Consolidation
PYE radios were an immediate success on the New Zealand market and the need for greater output at Waihi brought further expansion in the plant and staff until, in 1958 the area of the Haszard Street premises had been expanded from its original 17,000 sq ft to 40,000 sq ft and more than 200 people worked there.

In the intervening years Akrad had also undertaken the manufacture of additional products. Mobile radio-telephones and related tele-communications equipment in 1955. New Zealand’s first single cabinet stereograms were developed and rushed into production in the space of only two months in 1958. Other firsts were transistorised radios and the manufacture and use of printed circuits and of course, television.

Television
When the Queen visited New Zealand in 1953-54 PYE brought to New Zealand a complete television transmitting station which for several years remained the only demonstration unit of its kind in this country. Waihi’s Rugby Park was the scene of New Zealand’s first outside television broadcast, which Akrad engineers staged for a Harlequins versus Barbarians rugby match in 1954. The telecast, complete with commentary on the play, was viewed by hundreds of PYE sets placed around the field, in the Waihi hospital and several private homes.

In 1955 a further reconstruction of the PYE group in New Zealand took place when G.A.Wooller and Co. Ltd and Green and Cooper Ltd were both absorbed into the group and the company changed its name to PYE Ltd, Akrad remaining the group’s principal manufacturing unit.

In 1959 an initial run of black and white televisions was made. By 1960 however, it had become apparent that still further expansion was needed and the company began looking around for appropriate sites. Upon the purchase of the Moresby Avenue site, a new 160,000 pound factory of 56,000sq ft, was commissioned and subsequently opened on the 10th of December 1962. In conjunction with this a research and development laboratory was opened the following year. Along with this expansion several other subsidiary factories also operated in Paeroa and Hamilton between 1960 and 1983. With the opening of the new Moresby Avenue factory, black and white television manufacturing lines were transferred from the old No.1 plant with other radio and car radio lines, as well as the by then highly successful range of ‘Sea phones’. This left the old factory free for machining and painting the needed parts as well as providing further space for coil winding.

Telecommunications had by now truly come of age.

Reconstruction and a New Name
In 1966 a reconstruction of the parent company PYE took place when the Dutch-based Philips organisation bought the company. However, this wasn’t to have much direct effect on the New Zealand company until 1979-80 when Philips also took over the New Zealand operation of PYE.

1974 saw the commencement of colour television production. This reached a peak very quickly in 1975.

With the takeover by Philips and their subsequent rationalisation of activities, 1981 saw the closure of the Paeroa factories and the staff and work shifted to Waihi. Television production was shifted to Naenae in Wellington and all audio to Waihi. Then, because of major difficulties throughout the electronics industry in 1982-83, over 200 people from a total staff of almost 550 amongst the Waihi factories and the subsidury Hamilton factories, were laid off in early 1983. In late 1983 the Hamilton factories were closed, the operations shifted back to Waihi, the plant manager, Mr R. Evans, appointed and the gradual climb back to a secure market was begun.

Staff morale was slowly but surely raised by a diligent management approach. Maintaining a policy of quality and flexibility and working closely with the Philips New Zealand Limited Commercial Divisions, the Waihi Plant continued manufacturing and assembling a wide range of products. These included home audio and in-car entertainment under the Philips and Pye brand names, coffee makers, irons and toasters, telephones and ancillary equipment for the Post Office and professional products for the Philips Electro Acoustic Division.

The Waihi plant became known as the Waihi Electronic Centre - Philips New Zealand Limited, with effect from January 1st, 1985.

MAJOR DATES
1932: Business founded by K.M. Wrigley
1933: Commencement of manufacture of Akrad brand radios - Futura, Luxor and Everest.
1942: King’s Hall purchased for 600 pounds. Defence contracts secured. Production of morse keys and buzzers. Signal lamps and sirens for local defence.
1945: G.A. Wooller & Co. founded - distributors for Akrad. Staff numbers up to 50.
1946: January 1st, K.M. Wrigley died.
1947: T.J.F. Spencer appointed manager. Akrad Radio Corporation Ltd formed. Limited capital of 30,000pounds.
1949: Began preparations for black & white TV. Approach PYE of Cambridge.
1951: PYE N.Z. set up. G.A. Wooller appointed Managing Director.
1954: First N.Z. outside TV transmission from Waihi’s Rugby Park.
1955: G.A. Wooller and Green and Cooper (PYE’s N.Z. agents) absorbed. Akrad principal manufacturing unit.
1958: Development and production of first single cabinet stereogram. First use of printed circuits in New Zealand.
1959: First production run of black and white television.
1960: First Paeroa factory opened in leased premises.
1961: First Hamilton factory opened.
1962: Opening of Moresby Avenue plant.
1963: Opening of Barry Road research and development laboratory. Opening of own building in Paeroa.
1964: Staff peak at over 500 in production of black and white television. Paeroa factory gutted by fire and rebuilt. Opening of Paeroa record pressing plant.
1966: Introduction of highly successful ‘Sea phones’ line.
1967: PYE of Cambridge sold to Philips.
1974: Colour television production commenced.
1977: Paeroa record factory closed. Takeover of PYE U.K. completed.
1980: Philips took over PYE N.Z. Ltd.
1981: Paeroa closed. Philips policy of universal rationalisation introduced. Colour TV to Naenae and all audio to Waihi.
1982: 50th anniversay celebrations.
1983: Frankton closed. Major redundancies.
1984: Sees the beginning of climb back to full production. Introduction of non-audio lines.
1986: September 26. Factory closed as part of Philips international re-structuring