N.Z. Forest optimistic

Press, 21 July 1976, Page 21

N.Z. Forest optimistic

A quietly optimistic note is struck in" the annual report of N.Z. Forest Products. Export demand is expanding, and prices are expected to improve during the year, says the managing director (Mr A. W. Mackney).

Export sales last year represented 25 per cent of Forest Products’ 1975-76 total S2OBM turnover. Mr Mackney says the forward picture for exports is one of increasing demand, though at this stage there is little upward movement in prices. “However, some of our overseas customers are recognising that shortages are likely in supplies of pulp and paper and more buyers are seeking to safeguard their future position by means of term contracts.” Demand for pulp, sackkraft and lineboard in Australia appears to be strength- • ening. i Demand for kraft pulp and paper is slowly growing in the Middle East and the African continent. Export of hardboard to Britain and the Pacific Islands has been resumed. The log trade with Japan is now at a very modest level and will continue on this basis throughout the current year. Domestic demand for paper has recently improved, and the forecast of future paper demand is such that the No. 1 machine at Kinleith. which was rebuilt, is now again in production. Production from the No. 3 paperboard machine at iWhakatane is expected to height next month. This machine i has an output of 60.000 ■ tonnes a year and will take ; the place of the No. 1 IWhakatane machine (capaIcitv 30.000 tonnes) which iwiil be held in reserve till

• required to meet increasing demand. The installation at Kinieith of the equipment to manufacture plywood has proceeded smoothly and production is expected next month, Mr Mackney says. The company's holding of

forest land at March 31, 1976 was 173,429 hectares compared with 171,768 hectares at the same time last year. Planting Mr Mackney says the area acquired was significantly less than that needed to meet the target planting rate, particularly ih the King Country. Consideration of King Country development was interrupted when the Forest Service classified only small areas as available for exotic forest. The matter is now under discussion with the Forest Service. The company planted a total 10,589 hectares in 1975, a record for recent years. A total area of 11.074 hectares is planned for 1976. Total production of pulp at Kinieith in 1975-76 was 356.465 tonnes, compared with 361,243 tonnes in 197475. Total production of paper for the year was 234,000 tonnes. ' compared with 235,000 tonnes last year. The total group turnover of S2OBM for the latest year compared with $195.3M in 1974-75. The accounts show a consolidated net profit of $20,634,589 for the March. 1976 year, an increase from the preliminary statement of profit of $20,290,000 made in May. The consolidated figure of $20,634,589 includes the company’s share of profit arising from joint ventures and associated companies, it compares with a recalculated, same-basis $20,177,021 for the March, 1975 year.

U.S.. output douii

Industrial output in the United States rose. 0.3 per cent in June, making a

sharp fall from the rate for ithe preceeding few months, says the Federal Reserve Board. The increase in May was 0.7 per cent. The .lune rise was the smallest since March last year. when industrial production dropped 0.9 per cent.