LINEN FLAX FIBRE

Press, Volume LXXXVII, Issue 26409, 1 May 1951, Page 8

LINEN FLAX FIBRE

PRICE RISES 33 PER CENT. WASHDYKE FACTORY REOPENED A sharp increase in the world price for linen flax fibre has influenced the Linen Flax Corporation of New Zealand in its decision to reopen its factory at Washdyke, which was closed in May last year. The general manager of the corporation (Mr H. D. McCrostie) said yesterday that the rise in fibre prices bore a resemblance to the movement on the wool market. Values were now about 33 1-3 per cent, higher than they were only six months ago.

The corporation recently sold 100 tons of B grade fibre—the average quality produced locally—at £402 a ton f.d.b.. with packs valued at about £3 a ton extra. Six months ago the corporation would have been satisfied with £3lO, c.i.f. A year ago the corporation received £212 c.i.f.

There is a wide overseas inquiry for fibre and tow, and the corporation has received communications from many parts of the world, including Czechoslovakia. France, the United States of America and Japan. Mr McCrostie said that only surplus materials were exported, as the main purpose of the industry was to supply New Zealand spinners. There would, however, always be surpluses, as to obtain the correct grades squght by local spinners it was necessary to produce more than was actually needed. Mr McCrostie said there was no thought of increasing the area of flax grown in the light of the new high prices for fibre, as the industry was essentially to service local industry and overcome the difficulty of importing raw materials. The corporation sold 80 tons of tow to an overseas source toward the end of last year, and recently 100 tons of fibre was similarly disposed of, but this consignment has not yet been shipped on account of the waterfront hold-up. When the factory at Washdyke was closed about a year ago there were 3000 tons of straw in stack at the factory site. It had been intended to draw gradually on these stocks to keep other factories occupied. In view of the world demand, however, the factory was reopened last month to process the 3000 tons of flax which was still there. The factory is now in the process of getting back into production.