Revertex ‘no’ to S.I. plant

Press, 18 July 1979, Page 23

Revertex ‘no’ to S.I. plant

PA Auckland The establishment and ' running of a South Island i plant by Revertex Industries, I Ltd, would not be economically viable, said the chairman (Mr W. R. Campbell) at ‘the annual meeting.. ■ In line with the Governiment’s regional development (policy, Revertex, before de(ciding to expand at Penrose, (seriously explored the possibility of a South Island ;plant, he said. A feasibility study showed ■ the lack of population in the; south was the crucial factor. I ' Mr Campbell also drew at-i | tention to the recent 5 per cent devaluation. “'Any short-term advantage gained from more competitive pricing of ouri exports will be far outweighed by the inflationary I effect of devaluation on our‘ raw materials cost.” Revertex was concerned, about the rapidly rising cost of imported oil-based raw)

materials, some of which had already doubled. The company's fortunes would eventually be closely linked to its expanding prospects in South-East Asia. The pattern would consist | of Revertex providing a high level of technological and; management . skills and; building plants for the pro-! duction of specialised resins! for Asian markets. Returns for the first quarter of the financial year are at a similar level to those ’ for the same period in 1978, | he said.