Skellerup is allowing for a 20 percent capacity increase at the new $30 million factory it's building in Christchurch.
The new dairy rubberware factory at the Wigram Business Park being developed by Ngai Tahu is expected to be completed by December 2015.
The about 200 staff currently employed at the company's earthquake-damaged plant at Woolston will move to the new 18,900 square metre facility in stages.
Skellerup says the cost of the new plant is only partly covered by the insurance payment on the Woolston site.
Chief executive David Mair said the new factory will provide considerable efficiencies over the multi-building complex at Woolston.
He said while he wouldn't describe the earthquakes as any kind of blessing in disguise, the new factory is an opportunity for Skellerup.