The Press FRIDAY, APRIL 10, 1959. Aluminium Project

Press, Volume XCVIII, Issue 28866, 10 April 1959, Page 10

The Press FRIDAY, APRIL 10, 1959. Aluminium Project

The proposal of Northern Aluminium, Ltd., to establish a fabricating plant in New Zealand opens an exciting field of possibilities. No doubt the British company would not plan this venture if it did not appear profitable, though it might require protection in the early stages, at least. Too little information is available in New Zealand to be sure whether protection by import control or tariff would be justified in the national interest; but it is likely enough that the venture will be thoroughly economic. If so, its establishment in Christchurch, or anywhere in New Zealand, will add a valuable new element of diversity to our manufacturing capacity. Auckland also is advancing good claims to be the site of the factory. Perhaps neither Auckland nor Christchurch is the best site. Ultimately New Zealand should be able to establish the more desirable plant for the production of aluminium ingots, which would better suit the policy of the Department of Industries and Commerce to import basic raw material rather than partly processed material for New Zealand factories. If so, it would be an advantage to have the fabricating plant conveniently close to the primary mill; and that should be close to its own, independent source of water power.

Other companies are said to be interested in producing aluminium in New Zealand. Since the present capacity of the world’s aluminium industry probably exceeds the demand, these projects may have to wait a while. Ultimately, however, the versatility of aluminium should create a much larger market. The demand in the United States, for instance, is now much greater and more

varied than the demand in other countries. Aluminium has many uses besides pots and pans and aeroplanes. It has a great future as a permanent building material and promises to become an increasingly important component of engines. General Motors, for instance, has produced three experimental aluminium motor-car engines, described as “ a significant engin- “ eering break-through compar- “ able to the 1947 announcement “ of GM’s first high-compression “ experimental engine ”. It can be used for almost every purpose where a metal ,is required and in many others as well. Because of the abundant cheap power of the South Island, New Zealand is well placed to share in the expansion of the industry. It has never been quite clear why New Zealand failed to attract the aluminium industry before the heavy Canadian investment in the Kittimat project One factor undoubtedly was that the then Labour Government refused to relax its policy of a State monopoly of power and of supply only at standard grid pricey The present Labour Government has wisely reversed the policy, so that undertakings requiring large blocks of power will be allowed to generate their own. Sooner or later this will attract overseas interests. Another factor after the war may have been a Government wish to have not only a plant to produce aluminium but also a plant to fabricate it. If so, it is ironic that New Zealand now has exactly the opposite prospect—a fabricating plant and not basic production. Though it is early yet for confident assumptions, the prospects for industrial expansion in New Zealand are brighter now than they have ever been. Aluminium fabrication is only one of the possibilities.