Nelson Pulp Mill Now Unlikely

Press, Volume CIX, Issue 31905, 5 February 1969, Page 1

Nelson Pulp Mill Now Unlikely

(From Our Own Reporter)

WELLINGTON, February 4.

A recommendation that will dispose of plans to develop a pulp and paper industry in the Nelson area is likely to be made to the Forestry Development Conference by its forest industries working party.

The Government might have to make a politically difficult choice between areas competing for major afforestation, the chairman of the forest industries working party (Mr F. W. Holmes) said today.

“Government policy must be to build up big forests in a few areas where large pulp and paper industries can be built nearby,” said Mr Holmes. “If we are to compete with North American and Scandinavian exporters we cannot expand our pulp and paper industries by building small units based on scattered wood resources. In exporting countries, the,size of mills has grown rapidly because competition for markets has brought prices down to a level where only large, integrated mills are profitable. “Overseas, newsprint machines are being installed with speeds up to 3500 ft a minute and outputs of 150,000 tons a year. Many kraft paper machines and pulp mills produce more than 200,000 tons a year.

“A modem kraft pulp and paper mill of minimum economic size consumes some 24m cu. ft of wood a year. About 100,000 acres of exotic forest is needed to supply it. “The working party intends to report to the formal ses-

sion of the conference that the expansion of the pulp and paper industry that will be needed in the 1970 s should be by large-scale integrated developments in the RotoruaBay of Plenty region. “We consider that in the 1970 s Nelson should concentrate on rec'-nstructing its sawmilling industry and building ancillary industries, such as the chipping project already under way. At the same time, it should continue to build up its forest resources to a size that would support a major pulp and paper development in the 1980 s. “Developing a strong sawmilling industry should help in the development of the pulp and paper industry and also provide for a satisfactory return to the forest owners. “We think it would be unwise to divert resources in the 1970 s from the Southern Kaingaroa forest to provide the basis , for a pulp mill in Hawke’s Bay. Probably in the 19905, when wood supplies have been built up in the region, Hawke’s Bay will provide a very suitable site for a major industry. “The forest resources of Otago-Southland could perhaps provide the basis for another development about the same time. “We hope that the total amount of forest planting will be sufficient for both Hawke’s Bay and- Otago-Southland to build major industries in the 19905,” said Mr Holmes. “But If resources are not

sufficient for both to be planted at an adequate rate, the Government should face the hard choice of giving priority to one area, rather than planting too slowly in both.”