Overseas investment decision for case 200820032 - New Zealand Steel Limited

The application for consent has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
The Applicant operates as a fully integrated steel mill at Glenbrook, approximately 60 kilometres south of Auckland (Existing Property). The mill is surrounded by 500 hectares of farmland acting as a 'greenbelt' buffer zone around the steel mill.

Outline to the Investment:
The Applicant has entered a sale and purchase agreement (Agreement) with Mr TJ Miller to acquire the Land, which adjoins part of the farmland comprised in the Existing Property currently owned by the Applicant.

Rationale for the Investment:
The Applicant operates a livestock farm in and around the greenbelt area. The Land will be amalgamated into the existing greenbelt area and farming operation. The Applicant's primary purpose for acquiring the Land is to expand the farm on the Existing Property, thereby providing economy of scale to the Applicant's farming business and enhancing the buffer zone surrounding the Applicant's steel mill operations.

The proposed investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

Overseas Investment Regulation 2005:
r28(a) - Consequential benefits;
r28(e) - Previous investments of benefit to New Zealand; and
r28(g) - Enhance previous investments.