Tasman expects marked improvement

Press, 20 July 1979, Page 17

Tasman expects marked improvement

j PA Auckland ■ There .should be a marked j improvement in the earnings ; of Tasman Pulp and Paper (Company, Ltd, in the curj rent year the chairman (Mr j R. R. Trotter) said at the annual meeting. i The company had full jorder books for newsprint, [and pulp, and prices were firm, and it was looking at the feasibility of a fourth newsprint machine, he said. Production was at record levels, and quality was excellent. This reflected the benefit of capital expenditure in recent years. Both the recent devaluation. and the new export incentives announced in the Budget would be of significant advantage to Tasman, Mr Trotter noted. Enormous wood resources would become available in the 19905, and it was important to foster the growth of New Zealand-owned and managed users of this valuable raw material, Mr Trotter said. Tasman was now undertaking preliminary studies of the feasibility of a fourth

paper machine, which would cost more than SIOOM but produce extra overseas earnings of at least SSOM a year. It would take a year to study markets, world capacity, and Government policy on making available, and pricing, the vital resources, he said. The New Zealand Newspaper Publishers’ Association agreement to further price increases for newsprint would materially assist in alleviating the losses from supplying the domestic market, Mr Trotter said.

Sawn-timber production reflected the weak domestic market, but domestic sales had increased, and there was a substantial improvement in exports. The level of profitability of exotic sawmilling was far from satisfactory. There were further short strikes early in the current year before a compromise was reached on wage relativity. The .setting-up of a work-ing-party of employee, union and company representatives was an encouraging step, Mr Trotter said.