Bed maker Sleepyhead is building a new $45 million manufacturing plant in South Auckland.
Sleepyhead joint managing director Craig Turner said the manufacturing, warehouse and distribution facility would be built near the Vodafone Events Centre in Manukau in a hub which would bring together the 400 staff from its Otahuhu and Avondale operations.
"We decided to amalgamate those two facilities, primarility because we can't sustain the production requirements in the current facility," Mr Turner said.
"We've started to export our beds to China, which is good for us, and we're also exporting specialist foam to China."
The company was also on a programme to moved shared services people, such as those in finance and IT, from Australia to Auckland and the Otahuhu facility was not big enough to house the extra staff, he said.
The expansion would mean at least 40 extra jobs, on top of 25 created in the past six months, Mr Turner said.