COURTAULDS CURTAIL FIBRE PRODUCTION

Press, Volume CV, Issue 31029, 7 April 1966, Page 14

COURTAULDS CURTAIL FIBRE PRODUCTION

N.Z. Press Association—Copyright)

SYDNEY. April 5

Directors of Courtaulds (Australia) continued to be concerned at the rate of tyre fabric imports and the increase in competition from alternative fibres to viscose.

Their report for Ihe six I months to December 31 says demand for viscose tyre fabi ric was reduced severely during the period. This necessitated a drastic i curtailment of production, a reduction in labour force and I institution of rigid economy measures. Directors add that the situj ation has continued to deteriorate since December 31 and j the short term outlook is not ' encouraging. “The continuing high rate of imports of tyre fabric and j tyres, together with increased I j competition from alternative i fibres and a slackening de-1 j mand for new vehicles were the major factors affecting this part of the company." the report said. Directors say the position will improve as sales of motor vehicles recover and stimulate the demand for tyres. The company is awaiting a decision from the Tariff Board inquiry into man-made fibres and yam, and tyre cord fabric which was heard last year. The report says a decision to increase the level of protection on these products would be of direct assistance to compete effectively with j low priced imports from Japan. • As reported before profit

of the group for the six months to December was 459.298 dollars. This included 125.896 dollars from James Nelson Investments and its subsidiaries for a nine months period in order to bring balance dates in line with Companies’ Act requirements. Consolidated profits of Courtaulds in the 12 months to June 30 was down from 1,200.000 dollars to 1,032,000 dollars which compared with 1,531,000 dollars two years before Sales of acetate textile yarn during the six months to De cember 31 were at a high level. Directors say future demand for this product appears good, although some reduction in sales to weaving customers may result from the Tariff Board decision to reduce the level of protection on low priced imported woven fabrics. Demand for products of James Nelson (Australia) was well sustained and satisfactory profits were earned. Southern Maori Seat. — Sir Eruera Tjrikatene. sitting j member for Southern Maori, has been nominated as (Labour’s candidate for the seat in this year’s General i Election.—(PA.) ,