COMPANY'S PLANS

Auckland Star, Volume LXXVI, Issue 200, 24 August 1945, Page 7

COMPANY'S PLANS

POSITION OF RF.ID RUBBER FACTORY AT ELLERSLIE Satisfaction with the Government's decision concerning the manufacture of tyres in New Zealand was expressed to-day bv representatives of Reid New Zealand Rubber Mills, Ltd., in an interview. Their immediate objective, it was stated, was to establish a factory on their property at Ellerslie, and produce 500 tyres, with tubes, a day. The whole of the company's organisation at Penrose would be transferred to the Ellerslie site as soon as could be arranged. Arrangements had been made with the B. F. Goodrich Company in the U.S.A. for the supply of technical data and for the provision of key technical men to supervise the construction of the works and equipment, and to train personnel. The factory would be completely staffed by local labour, except possibly for two or three highly-trained men selected by the Goodrich organisation. As far as plant was concerned, the company was free to purchase wherever it' could, but it was anticipated that almost all of it would come from Britain. When production reached a reasonable volume the company was confident that it would put the goods on the market at prices below those ruling at present, and equal to pre-war quality. The general opinion of experts, it was stated, was that by that time the rubber producing countries would be supplying the raw materials in sufficient quantities, and the fabric position—cotton and rayonshould also be back to normal. Importance of Project The company's representatives mentioned that when the applications were being considered by the Bureau of Industries, there seemed to be general agreement among the applicants that it would Probably be 18 months to two years before thP new factories could reach full production. Although the sudden cessation of the war might make the position easier as regards plant there was no indication that the building position in New Zealand would be rapidly improved. However in view of the'importance of the project, it was anticipated that high priority would be accorded the mdustry. Such priority was of the ereatest importance to the Dommfon as the tyre position was as serious to da/as it had been at any time Since the Japanese over-ran the rubber producing countries. The rubber position, in fact, had been far more critical than petrol. The building and equipment for the three factories could not Evolve a sum of less than £400,000, or a total of £1,200,000, it was stated. As regards capital, arrangements had been formulated by the comnany and an announcement would he made as soon as possible The nf the license required that tne capi tal proposals should receive official approval, and capital would be needed progressively as construction Pr As ee s d oon as it could be arranged, thP managing director of the company Reid. would proceed overseas to confer with plant manufacturers and suppliers with a view to obtaining early delivery of the necessary equipment.