Mosgiel lent $3.3M for Alford Forest mill

Press, 21 December 1977, Page 20

Mosgiel lent $3.3M for Alford Forest mill

Mosgiel. Limited, Dunedin based knitwear and textile manufacturer, has obtained finance totalling about S33M to assist in the financing, acquisition, and operation of the Alford Forest Mill, and to change the mill into a worsted, and woollen-yarn spinning unit, the company says. Three loans have been made available to Mosgiel ' by the Development Finance ; Corporation of New Zealand, i and the Wells Fargo Bank,: San Francisco. The major portion of the funds is a SUS2M floating-j rate loan, which has been: provided jointly by the! Development Finance Cor-: poration and Wells Fargo I Bank. In addition, the Devel-i opment Finance Corporation) has made a SNZIM fixedinterest loan, and in conjunction with the Department of Trade and Industry a $NZ250,000 interest-free I regional development! suspensory loan. The finance will be used by Mosgiel to meet plant relocation costs as well as providing working-capital to assist the company’s 1 takeover of the Alford Forest Mill near Ash-; burton. The mill was until) recently owned by Lane, I Walker, Rudkin, Ltd, whose):

1: intention is to concentrate i on garment manufacture. 1) For Mosgiel the Alford [jForest mill presented an at- , I tractive opportunity for conf solidation of its production I and marketing, particularly i in relation to knitting yarns i for which there was ai ■ strong demand. The loan-documents were) /signed in Dunedin today by II Mr J. S. Lee, the managing . director of Mosgiel; Mr C. L. I Nees, a director of Mosgiel; ’|Mr R. L. Gaskell, the assistant general manager of the ..Development Finance Corporation; Mr V. A. Langford, /the South Island manager of , the Development Finance / Corporation, and Mr F. Pierro, the Sydney representative of the Wells Fargo Bank. i Mr Gaskell commented that the SUS2M loan to Mosgiel was the first loan syndicated by the Development Finance Corporation I with an overseas bank. As] I such, it represented a significant expansion in the range of services offered by the corporation to New Zealand’s manufacturing-sector, particularly exporters. I It was also a direct indi-l I cation, Mr Gaskell said, of ) the continuing support I which the Development Fini a nee Corporation was pro- ) viding to Otago-based manu-i Ifacturers. ]

Mr Pierro said that the Wells Fargo Bank, like most major international banks, was interested in lending to New Zealand,

“Wells Fargo also, however, has a desire to increase lending to the New i Zealand private-sector, with I particular emphasis on com- ) panies which operated in the national interest, such as Mosgiel. “The opportunity to participate with 1 major New Zealand financial institution, the Development Finance Corporation, further enhances our interest, and we look forward to similar opportunities in the future,” said Mr Pierro.