EXOTIC TIMBER INDUSTRY

Press, Volume LXXXIX, Issue 27165, 8 October 1953, Page 10

EXOTIC TIMBER INDUSTRY

Tasman Company And Forest Products CO-ORDINATION OF ACTIVITIES (New Zealand Press Association) WELLINGTON, October 7. Designed to co-ordinate manufacturing and marketing activities, and also to pool research resources, an agreement has just been concluded between the Tasman Pulp and Paper Company, Ltd., and New Zealand Forest Products, Ltd. . > A statement outlining the basis of the agreement was issued today by Mr B. C. Ashwin, deputy-chairman of the Tasman company, and Mr David Henry, chairman and managing director of New Zealand Forest Products. Under the agreement, the main objectives are the development and expansion of New Zealand forest industries in an orderly, efficient, and economic manner, and the companies have resolved to co-operate fully to that end,” says the statement. “On the one hand, it has been agreed that the Tasman company will specialise in the production of newsprint and fine writing and printing papers, and sell any surplus of pulp overseas. On the other hand, New Zealnad Forest Products will have full freedom, to expand the production of kraft pulp and paper for use and sale in New Zealand overseas. The paper will be mostly used in the manufacture of bags and containers of various kinds. “There will be no competition from the Tasman company in the building board field. Thus the operations of the two companies will generally not conflict, and where they do, the companies will co-operate for their mutual benefit

Development of Markets “For instance, the companies will co-operate fully in the developing of export markets, and jointly deal with sales policy, shipping problems, etc.,” the statement says. “The companies will also give early consideration to the promotion of practical plans for joint research on timber pulp and paper problems, and each company will make available to the other all present information appropriate to such problems. “Such matters as awards, conditions of employment, etc., will be considered jointly as they arise. “The agreement provides for the pooling of information on logging methods and costs. This includes the use of the most suitable plant and equipment, types of roads, etc. “As the companies have at their disposal more than half the total exotic forests in New Zealand, the arrangement just concluded between them is intended to develop the of their products in New Zealand and overseas, and an enterprising marketing policy is envisaged. The harmonious co-operation of State and private enterprise in the extended use of. the Dominion’s soft-wood resources, which is regarded as essential by both companies, has under the agreement, been assured.

Exports of Pulp “In recent weeks, New Zealand Forest Products, Ltd., has pioneered the export of pulp, and steaaily-grow-ing shipments of timber pulp and paper products, which will be substantially increased when the Tasman mills come into production, are expected. “These new exports will assist materially in earning overseas exchange, saving dollar expenditure, and strengthening the sterling area, as well as in providing regular and steady employment for thousands of people and a livelihood for . others depending on them.

“Moreover, it is hoped that Australia will become a major outlet for our forest products, thus rectifying in some measure the chronic adverse trade balance which has developed between that country and the Dominion. “Both, companies are confident that quality of their products will reach the highest standards. Joint pooling of knowledge and experience in the timber utilisation field should ensure that result,” the statement concludes.