A Samoan company called Fero Samoa is aiming to migrate 60 per cent of its Asian products to a new facility in Samoa which will be a SAT$2.6 million investement, believing it could prosper and contribute to the economy and employ even more people.

Fero Samoa is a family-owned manufacturing company established in 2017 and is currently employing about 107 local staff, of which 50 per cent are women and ages range from school leavers to 60 years of age.  

Founded with 70 employees, the company operates in one-third of the original factory which used to be the former Yazaki Corporation.

They export all of its manufactured items, mainly to New Zealand and Australia with wire harnesses reaching markets in Europe, the US, Canada and Australasia.  The company offers integrated wire technology solutions, wiring looms, component supply, sub assembly and manufacturing solutions for manufacturers throughout the world.

This means that all they assemble in Samoa is exported.

General Manager of Fero Samoa Teliai James Potoi stated in an interview with Samoa Observer that the company's primary goals are employment and injection. They are seeking to export 100 per cent of their materials and machinery duty-free.

“The good thing about this kind of industry is all new money coming in. Nobody has this and we are not competing with other local industries but provide employment. The long-term goal is to make Samoa a manufacturing hub which would provide pretty much independence," he said.

“This is a pure 100 per cent export company and we are looking at 100 per cent export and we want to have duty-free on our materials and our machines.

Teleiai further stated that the expansion plan will see more than NZ$1.5 million (SAT$2.6m) invested in specialised plants and equipment and the development of 60 new jobs for the local workforce in the next six to nine months.

Fero is currently working on an expansion plan for their already established world-class facility based in Vaitele, with ultra-high standards that meet global ISO and UL audits and certification.  Their focus on quality and productivity has resulted in the growth of products and has attracted customers including many global companies desiring quality products at competitive prices.

Whilst the company also manufactures harnesses in New Zealand, the directors and senior management team believe that they should build a larger plant in Vaitele, and further transfer more products from New Zealand to Samoa.  Currently, the sales and engineering design support remains in the New Zealand operation, closer to the New Zealand and Australian market where the bulk of the customer relationships reside.

The expansion plan will create more production capacity to cater for further New Zealand manufactured products to be transferred to the Vaitele plant for manufacturing, and also a new finished product line initially for demand to a new customer in the US market. A growing market in Australia has also fuelled more production demand for the Samoa operation.

However, Fero is facing unprecedented challenges around competing with RSE programs to retain staff and grow its workforce, and hope that the Government will soon strike a good balance with developing export businesses, import replacement businesses, agricultural export, and tourism to expand its financial independence. 

Fero is currently working with the Samoa government on their investment in the expansion plans, seeking further support to cement current manufacturing incentives being able to remain in place to support the higher levels of investment that not only include plant and equipment but also resourcing training and management needs.

“It is our wish to work more closely with the Government of Samoa to develop capabilities and capacity locally to ensure sustainable manufacture and the growth of an industry that can provide a future for people to live, work and raise families in Samoa.  

“We appreciate the government of Samoa also has this long-term view and can see the benefits in investing in developing capabilities, training and growing the workforce and creating more high-value employment opportunities.