I.C.I. sales running 16 per cent ahead

Press, Volume CXIII, Issue 33156, 21 February 1973, Page 14

I.C.I. sales running 16 per cent ahead

Group sales for the first quarter of the year, to December 31, of 1.C.1. New Zealand, Ltd, were 16 per cent higher than in the corresponding period last year, the chairman (Mr D. B. Green) told the annual meeting in Wellington yesterday.

The outlook for this financial year was promising, he said. The lower rate of cost increase was encouraging. but 1.C.1.’s costs were influenced also by external factors, and the revaluation of the Australian dollar would raise raw material prices.

The prices of imported goods for re-sale would also be affected; however, it was too early yet to make a reliable assessment of the net effect, Mr Green said.

As a supplier to the rural sector the company was well placed to benefit from this sector’s prosperity, while the increased activity in secondary industry would affect the company as a supplier of raw materials. “While statistics continue

to indicate a level of unemployment, the 1.C.1. group of companies is experiencing difficulty in recruiting suitable manpower. With the increase in business activity which can now be foreseen this problem could soon become the main limiting factor in the ability of industry to lift factory production and manufacturing efficiency. “Government action to en-

courage increased immigration, particularly of tradesmen, would be of considerable assistance. It is to be hoped that steps will be taken quickly to augment this scarce resource, otherwise the shortage could bring about excessive - competition to secure the trained manpower which is available, with its inevitable consequences.

“The company is now predominantly a New Zealand manufacturer. Ten years ago the bulk of our sales were made up of imported finished products. Today the reverse is the case, most of our sales coming from local manufacture—and it is our policy to continue increasing our local investment in manufacturing and servicing facilities.” The formaldehyde and resins plant at Hornby is operating satisfactorily. It supplies resins to the growing chipboard and plywood industries in the South Island, Mr Green said.

The P.V.C. dry blend plant in Auckland has also been commissioned.

Dulux New Zealand is implementing a, $500,000 expansion programme.

The wallpaper division at Levin is being expanded. The study on the economic feasibility of wax extraction from the Chatham Islands, which the company is undertaking with Pan Pacific Mining Corporation, Ltd, and Dillingham Overseas Corporation. is continuing; it is expected to be completed in December, Mr Green said.