Expansion In Cement Demand

Press, Volume CIV, Issue 30886, 20 October 1965, Page 22

Expansion In Cement Demand

<N.Z. Press Association) DUNEDIN, Oct. 19. The chairman of New Zealand Cement Holdings, Ltd., Mr L. C. Nisbet, expects that the demand for cement in New Zealand will double in the next 12 years or so. “Not to expand to meet the growing demand in an industry of this kind is to surrender the initiative and step out of the race,” he told shareholders at the company’s annual meeting in Dunedin today.-

“I cannot emphasise too strongly how essential it is that we continue to expand our plants. Only by doing so can we assure the continued growth in the financial strength and the success of your company.” Mr Nisbet told the meeting that the plant duplication at Westport was well under way, and, with the work ahead of schedule, there was confidence that the new kiln would be in use in August next year.

Present plans envisaged that the output of the Westport plant would increase from about 119,000 tons of cement annually to about 180,000 tons. But if a i

new crushing unit were de- Mr Nisbet said that during cided upon the present out- the 2j months which had elput could be doubled. apsed since the end of the fin-

To finance the expansion at Westport arrangements had been made for an increase of secured debenture stock by private placement to lending institutions, insurance companies and superannuation funds.

The company’s bankers had agreed to finance the balance, which, because of the heavy depreciation recovery once

ancial year sales had continued at a high level and there was every reason to believe that this would continue throughout the remaining period of the present financial year. For many years to come

the new kiln was in operation, would be of a relatively short term. The peak period of indebtedness would be about this time next year, after which the liquid position should improve rap r idly.

'there would continue to be a high level of demand for cement for hydro-electric schemes.

“Our estimates of earnings for the year under review are satisfactory and. provided that we can attain our budgets, the results for the year ahead should give no cause for complaint,” he said.