Enzlon Prefers German Advice To American

Press, Volume CV, Issue 31030, 9 April 1966, Page 3

Enzlon Prefers German Advice To American

(New Zealand Press Association) WELLINGTON, April 8. A West German firm, Badische Amlin and Soda Fabrik A.G. of Ludwigshafen, is to replace the original American sponsor company for technical assistance to Enzlon Chemical Fibres Ltd.

The chairman of Enzlon (Mr F. H. Renouf) said yesterday that the Enzlon board had confirmed his negotiations in Western Germany and the United States. Accordingly the contracts formerly held with the American firm were being cancelled, and new contracts with B.A.S.F. were being adopted.

Mr Renouf said that an indication of these arrangements was mentioned in his special letter to shareholders dated November 23, 1965.

B.A.S.F. more than amply filled this desired association, he said. They were an internationally known and vast chemical complex based on Ludwigshafen, and were amongst the first in the discovery of nylon more than 25 years ago.

The nylon plant at Shannon had been inspected by three B.A.S.F. technicians, and the board was satisfied with their reports, and it felt the company was certainly under good advice and assistance, Mr Renouf said. Enzlon Chemical Fibres required additional finance to enable it to have enough resources to carry on, Mr Renouf said, and members of the board were active in clearing the way at the moment for short-term facilities to be given to the company. Shortly proposals would be announced to shareholders

for the creation of £300.000 of 7 per cent cumulative preference shares with conversion rights into ordinary shares. The issue would be underwritten as to £200.000 by Daysh, Renouf and Company, and after the directors could call a meeting of shareholders it was hoped these financial plans would be set in train as soon as possible. “The board of Enzlon has had a titanic struggle,” said Mr Renouf. “It has surmounted many problems to date, and feels that with the association of B.A.S.F. we are now in good and capable hands.”. The German industrial complex Badische Anilin and Soda-Fabrik A.G. owns approximately 1500 factories supplying more than 5000 products in 130 countries. It is the twenty-seventh largest company in the world.