Power Cable Factory

Press, Issue 30997, 1 March 1966, Page 3

Power Cable Factory

(N.Z. Press Association) WELLINGTON Feb. 28. A new factory producing power cable for buildings, and particularly, underground distribution, is expected to be in full production by the middle of 1967, said the vice-president ot the Canada Wire and Cable Company, (Mr J. H. Stevens) in Wellington today. The new venture was being undertaken in partnership with the New Zealand firm of Tolley Holdings, Ltd., and would be established in three stages, he said. A contract for the first stage, a building of 165,000 square feet is expected to be let this week, and two other buildings of 60,000 would be built later. When it is completed, the

factory, which will stand on an eight-acre site at Bell Block, New Plymouth will have an area of 185,000 square feet. Copper Supply

Because the Canadian company is a wholly-owned subsidiary of Noranda Mines, Ltd., one of the largest copper producers in the world, the New Zealand factory is assured of a constant supply of copper for its manufacturing activities, he said. Production of cables by the New Zealand company is expected to achieve a saving of approximately 40 per cent in the overseas exchange required for the importation of cables.

The Government has approved the new industry, says the report. The New Zealand company will be associated with Canada Wire and Cable as a private company called Canada and New Zealand Associated Cable Company, Ltd. The shareholding ratio will be 60 per cent New Zealand, 40 per cent Canadian, it was announced in a report to the Stock Exchange Association. “The prospects are for sub- [ stantial increases in profits by

Tolley and Son, Ltd. (the holding company’s subsidiary) as merchants as soon as the cable manufacturing company can commence deliveries,” the report said. However, the investment in the new company would not show direct results to Tolley Holdings, Ltd., by way of dividends for some years, as it would be necessary to plough back profits, it was stated. Dividends should be payable by the new joint company by 1969-70, the report concluded. Tolley Holdings, Ltd., was officially listed on the Stock Exchange last October after a public issue of 200,000 10s shares at 12s 6d a share. A cash issue to staff of £50,000 was also made. Since listing the share price has remained almost static at! Ils 6d.

Group net profit in the year to March 31, 1965, was 6.8 per cent up at £37,107. An interim dividend of 2} per cent was paid immediately before the public placement, and a final of 31 per cent is anticipated in September, to make 6 per cent for the current year ending March 31.