COMMERCIAL New venture in chemicals

Press, Volume CXV, Issue 33941, 6 September 1975, Page 18

COMMERCIAL New venture in chemicals

(New Zealand Press Association) AUCKLAND. The New Zealand Farmers’ Fertilizer Company, Ltd, is planning to set up an $BOO,OOO chemical manufacturing plant in New Plymouth, the chairman (Mr P. C. Irwin Crookes) said at the annual meeting.

A new company, Chrome and Chemicals N.Z., Ltd, will make a range of chrome-based chemicals for New Zealand industry, particularly the tanning industry.

Turnover should reach slm a year in the second year of operations, Mr Irwin Crookes said. Farmers’ Fertilizer will hold 63.5 per cent of the new company’s $500,000 paid up capital. Neill Cropper and Company, Ltd, a subsidiary of Wattie Industries, Ltd, will hold 15 per cent and British Chrome and Chemicals, Ltd, will hold the remaining 21.5 per cent.

nology, and it is also one of the few producers of the major raw material, sodium dichromate. Mr Irwin Crookes said. Proposals for the making of other industrial chemicals were also being examined. Future planning for the redevelopment of the Otahuhu chemical plant would

The total capital will be about $BOO,OOO. Production is expected to being by the third quarter of 1976. Mr ; Irwin Crookes said. Farmers’ Fertilizer would be responsible for production and administration, and Neill Cropper would be responsible for marketing. British Chrome was necessary as it manufactures chrome chemicals, it will provide specialised tech-

be necessary, and because of the increasing size of company operations, financial restructuring would be considered. Sales of fertilizer were falling in the first three months of the current season compared with the previous year, he said. Steps taken to reduce the levels of stocks would not be completed until the end of next year, however, finance had been arranged through banks and short term loans to maintain a satisfactory cash position. The company was holding sufficient forward exchange cover to cushion the effects of devaluation, he said.