MANUFACTURE OF TYRES

Press, Volume LXXV, Issue 22656, 10 March 1939, Page 10

MANUFACTURE OF TYRES

Size Of Market In

New Zealand

“LARGE ENOUGH FOR

TWO FACTORIES”

That the New Zealand market for rubber tyres and tubes was sufficiently large to support the economic operation of two firms of the most efficient size was the opinion expressed by Mr G. W. Skellerup to “The Press” yesterday. Mr Skellerup, who is a large importer of tyres, said that the importance of tyre manufacturing for New Zealand was commonly underestimated. The establishment of a local plant has received considerable publicity since the .Bureau of Industry advertised on Monday the names of seven persons or companies who have applied for licences to manufacture rubber tyres and tubes. The total import of tyres, including those fitted to new vehicles, amounts to approximately £ 1,250,000 in terms of New Zealand currency, said Mr Skellerup. When a duty of per cent, was added, the value of the landed cost was £1,400,000. This was sufficient to maintain two factories of economic size in profitable production for a year, each making 1500 tyres and from 800 to 900 tubes daily. * “The scale of these figures is not generally realised in New Zealand,” said Mr Skellerup. “Nor is tfie tendency, becoming more apparent every day overseas, toward the establishment of several units, rather than one large one, and of such a size as will permit of a closer per-, sonal contact in human relations between the executive staff and employees, together with every facility for efficient management, as fully appreciated as it - might be. New works, being established in Canada and the United States of America in both tyre anck automobile manufacture, are becoming increasingly decentralised, and even being set up amid country districts. They are of sufficient size to secure the benefits of the special processes commanded by mass production, but yet not.too large for an effective control to be exercised over them.” It is understood that conclusions very similar to these were obtained by Canadian, American, and Australian experts in tyre manufacture, who visited the Dominion in 1937 and 1938.

Inquiries made in Wellington last night indicated that very great interest was being taken there in the project. Similar interest is being taken in each of the other main centres, and the possibility of a plant being set up in the environs of Christchurch is being eagerly canvassed. At present the Dominion’s motor industry is concentrated in the Hutt Valley. But it is felt by some that possibilities of further expansion in the Wellington district are somewhat limited, while a certain degree of decentralisation in the motor industry would be a benefit to the Dominion.