The second stage of a new multi-million-dollar hydraulics and engineering facility planned for Rotorua is under way.

Rotorua Lakes Council issued two consents valued at $5 million for the project in December.

It is part of 69 consents with a value of more than $18m issued by the council.

The new 2000sq m two-storey building at Eastgate Business Park off Te Ngae Rd, near Rotorua Airport, will become two flagship workshops for McRaes Global and IMG.

It's intended as a hub to create employment and training opportunities for the hydraulics and engineering sector in the wider Bay of Plenty.

New Zealand-based industrial specialist Integrated Maintenance Group bought McRaes Global in 2019.

Local developer Ray Cook bought the 1.4-hectare site at the Eastgate Business Park off Te Ngae Rd where the facility was being built.

McRaes Global Rotorua branch manager Christina Humphries says work on the building is 'full steam ahead now”.

'It's going up so fast. It's super exciting, you can see the difference week by week.”

The steel structure of the facility had been erected and Humphries hopes it will be complete in early June.

'At this stage it's on track, but you just never know with Covid and delivery delays.”

She says the development is about expanding and 'being able to do a lot more work”, and the company is already hiring new workers and keen to get people on board.

'We've got a massive ‘hiring now' sign, just put up yesterday.”

She says there aren't a lot of companies providing hydraulic engineering in Rotorua so the expansion will be a 'game changer”.

'Our facilities are going to be like no other. It's good for us, but also for our customers.”

McRaes Global has been in Rotorua for seven years, following securing a national hydraulics services and solutions contract.

Chief executive Jim Evans has previously said the company first acquired a small hydraulics company to provide a base, but outgrew it.

It has now outgrown its second location on Old Taupō Road, prompting the new development.

Evans expects about 20 people to be employed at the Rotorua branch in the next year or so, and believes it's possible it could be 50 in two years.

Rotorua Chamber of Commerce chief executive Bryce Heard says developments like the workshop is 'exactly what [Rotorua] needs”.

He says people underestimate the size of the engineering industry in Rotorua.

'It's a big engineering town now. It's good to see it growing.”

Data from the council revealed the total value of commercial consents in December was $5.8m, with nine consents.

A total of sixty residential consents for the same period came to $12.8m.

McRaes Global Rotorua branch manager Christina Humphries, (front) and staff from McRaes Global and IMG at the site of the new 2000sq m two-storey building at Eastgate Business Park off Te Ngae Rd which will become two flagship workshops. Photo / File / Ben Fraser / Rotorua Daily Post.

December building consents

What: Stage 2 – office showroom and workshop
Where: Wahanga-a-rangi Cres
Value: $3m

What: Stage 3: IMG building
Where: Wahanga-a-rangi Cres
Value: $2m

What: Decking with shade sails and temporary shipping container
Where: 516 Tarawera Rd
Value: $200,000

What: Verandah construction
Where: 1181 Fenton St
Value: $150,000

What: Internal alterations
Where: 5 Seddon St
Value: $100,000

What: Internal alterations
Where: 10 Malfroy Rd
Value: $80,000

What: Internal alterations
Where: 3 Seddon St
Value: $45,000

What: Fit out of existing building
Where: 1235 Fenton St
Value: $19,000

What: Change of use – install of smoke detection systems
Where: 8 / 11/ 13 Kuirau St
Value: $5000

-Source: Rotorua Lakes Council