Tasman diversifying markets

Press, 29 July 1978, Page 18

Tasman diversifying markets

PA Auckland Tasman Pulp and Paper Company, Ltd, will release some of its plans for the future in the next few months, the incoming chairman (Mr R. R. Trotter) said at the annual meeting. Mr Trotter, in seconding the motion by the outgoing chairman (Mr J. C. Fletcher) for the adoption of the annua! report and accounts, spoke about the study by the executive committee of all of Tasman’s affairs, and in particular of its finances, marketing, and industrial relations. „ In the past year S2IM of

term debt was repaid, and the company had a like amount falling due for repayment this financial year. It was planning to finance those repayments, and other short to medium-term requirements. It had been intended to call a meeting of shareholders to consider proposed changes to the articles of association to permit the restructuring of the capital of the company. ‘‘Unexpected developments had delayed the calling of the meeting, but it was hoped to announce a date soon,” said Mr Fletcher. Mr Trotter endorsed remarks of Mr Fletcher that, despite Tasman still having problems, including competition for international markets, the company would be facing them from a stronger base. Mr Fletcher has agreed to continue as a director, and has accepted appointment as deputy chairman. On behalf of the board, Mr Trotter paid tribute to Mr Fletcher who, with his father, the late Sir James Fletcher, conceived and “brought new technology to this country against tenders from around th° world when nobody else was prepared to have a go.” Mr trotter agreed with Mr Fletcher that the company’s industrial •elations

were “far from bad.” There was a great deal of loyalty towards the company at Kawerau, he said, but it would be foolish to assume human attitudes could change overnight, and he thought that the initiative was with the company. It would be shortsighted to attempt to evade and minimise the company record of industrial disturbances in recent years.

Last year production had been interrupted 13 times and the latest stoppage had lost sales — mostly in exports — of S24M as a result of which it would be difficult for the company to avoid a loss this year. This is a reason why, in conjunction with the debt repayment burden, the board

had considered it prudent to withhold a final dividend, said Mr Trotter.

Discussing the proposed new paper mil! of Australian Newsprint Mills, Ltd, Mr Fletcher said that, on the face of it, A.N.M.’s decision was in conflict with the A.N.M.-Tasman share exchange, and the New Zea-land-Australia Free Trade Agreement, but economic realities, of the aspirations of publishers in Australia could not be ignored, and the Tasman must accept “the great probability” that the Albury mill would proceed. “We believe that, in consideration of surrendering our reasonable entitlement under the share exchange and/or NAFTA arrangements, we should be granted.

preferential rights to supply the Australian publishers’ imported newsprint requirements.

“In any event, we need not be too pessimistic about our ability to develop sound long-term alternative markets while maintaining a substantial stake in the Australian market,” Mr Fletcher said.

In the past 12 months, Tasman had developed significant new markets in China, India, and numerous other Asian markets.

In 1976-77 only 4 per cent of its newsprint had been sold in markets other than Australia and New Zealand, wheras in 1977-78 the proportion increased nearly sixfold to 23 per cent, despite strong competition.