STEEL CASTINGS

Press, Volume LXXI, Issue 21623, 6 November 1935, Page 13

STEEL CASTINGS

FORMATION OF NEW COMPANY APPROXIMATE CAPITAL OF £20,000

The establishing in Christchurch of an electric steel foundry, with a capital of approximately £20.000, is forecast by negotiations which have been proceeding between Australian Alloy Steel, Ltd., and the New Zealand Electric Steel Company, Ltd. It has been stated unofficially that the Australian firm's offer of approximately £14,000 for the purchase of the Christchurch firm's works at Sockburn has been accepted. The offer was considered at a meeting of shareholders on Monday. The precise part to be played by the Australian firm in the development of the steel casting industry here is notyet known, and it is understood that large Christchurch engineering firms have been involved in the negotiations. Mr J M. Deschamps, managing director of Australian Alloy Steel, visited Christchurch some weeks ago to make investigations; but there was for a time some difficulty in arranging for the purchase of the Sockburn works, a necessary part of the plan. The Sockburn works at present employ about 20 men. Under the new company it is hoped to extend the plant, permitting the manufacture of ccstly steel castings, which are now being imported from abroad. It is expected that the company will begin operations early in the new year. "Considerable Importance" In a statement to "The Press" yesterday, Mr C. R. Williamson, who is New Zealand agent for the Australian firm, said that the proposal to establish a modern steel foundry in New Zealand was of considerable importance to secondary industries, especially to the engineering section. He was in a position to say that it was mere than likely that the offer of his principals to buy the Sockburn works would be accepted. "Australian Alloy Steel will probably form a separate New Zealand company," he said, "of about £20.000 capital, in which it will hold a substantial cash interest. This company will operate in conjunction with the works at Alexandria. Sydney, and will supply experienced men for the 'key' positions here. The new concern will be able to supply steel castings to meet any standard or special specification. "It is recognised that steel foundry practice in New Zealand is somewhat backward compared with that in other countries," he said, "and the establishment of a modern plant should be a means of raising the general standard. Most of the special steel castings which are now being imported from overseas will be produced in New Zealand, and there will be an increase in the number of men employed in the industry, at present represented by about five foundries in various parts of the Dominion." Mr Deschamps, from whom the first proposal came to develop the electric steel industry in New Zealand, introduced the electric furnace process into Australia in 1916. Since then his firm has supplied more than 40,000 ten:- of special steel to Commonwealth industries and to Government departments.

DUTCH BANK RATE REDUCTION TO 4 PER CENT (tjjrmsp lUSI ASSOCIATION—COPrttOHT.) AMSTERDAM, November 4. The Dutch bank rate has been reduced to 4 per cent. [Recent movements in the Dutch bank rate have been: May 31, 5 per cent.; June 26, 4 per cent.; July 24, 5 per cent.; September 16, 6 per cenU