Petro-Chemical Plant Unlikely

Press, Volume CII, Issue 30312, 12 December 1963, Page 19

Petro-Chemical Plant Unlikely

(New Zealand Pres* Association) NEW PLYMOUTH, December 10. There did not appear to be much likelihood of successful development immediately of a petro-chemical industry in New- Zealand, a, . d P ’ A; Department of Scientific and Industrial Research, in a report on the gas industry and natural gas development.

Mr Toynbee based his view on discussions held during visits to America, Britain, Europe and Australia during which he investigated coal and natural gas use. He concluded that the possibilities of arranging supply Icontracts overseas for liquid I ammonia or urea should be investigated if this avenue had not been explored. If the product could be disposed of such industries might be used to provide a large consumption of natural gas.

The possibility of smallscale carbon-black manufacIture also appeared to justify investigation. “A general impression gained was that in examining the possibility of establishing industries in New Zealand we have in the past been rather too easily awed by the term ‘minimum economic unit’ and we have accepted too readily that any plant installed in New Zealand with an output smaller than the largest plant overseas is bound to be uneconomic,” he said. *'lt has become obvious that the size of the plant

which will operate economically in New Zealand will be determined by the specific conditions obtaining here, and the estimate of the size oi the minimum economic unit must be determined by calculating the costs of production under these conditions.”

. Mr Toynbee said another impression gained was that many of the processes considered were net as complicated as had been imagined and it was thought the operation of the majority of them was well within the present technical capabilities of New Zealand engineers.