Skellerup will spend about $30 million on a new factory at Christchurch's Wigram Business Park, which is being developed by Ngai Tahu.
The new 18,900 square metre facility is expected to be completed by December 2015, and about 200 staff employed at the company's earthquake-damaged plant at Woolston will move to the new one in stages.
It will manufacture rubberware for dairy farming, such as hoses, teats and gumboots.
Skellerup chief executive David Mair said the cost of the new plant was only partly covered by the insurance payment on the Woolston site but that the new factory would provide considerable efficiences.
"I don't think I'd call it a blessing in disguise but what it did do was force us to consider what we were going to do with our agri-business here in Christchurch, and it is a great opportunity in that sense," Mr Mair said.
"Obviously we're really looking forward to having a facility that not only provides a better environment for our employees but also offers opportunities for some flow efficiency gains.
"So this is really great for Christchurch, and great for New Zealand, I think."
