U.E.B. plan to be reviewed

Press, 15 August 1980, Page 7

U.E.B. plan to be reviewed

I PA , Auckland' A plan by U.E.B. Industries, Ltd, for a $27 million plant to manufacture and process high-quality lightweight grades of paper is being re-evaluated, said the chairman (Mr L. M. i Papps) at the annual meeting U.E.B. had been holding discussions with N.Z. Forest, Products, Ltd, about the pro-i ject, he said. j (N.Z.F.P. is to acquire a ! substantial shareholding in U.E.B. giving it 40 per cent; of the voting rights.) The planned paper mill! was being re-evaluated by! U.E.8., N.Z.F.P., and the machinery suppliers, but Mr. Papps did not say why the; project was being re-eval-; uated. ! The mill was planned to I be built at Te Rapa, near Hamilton, and was seen as being complementary to N.Z.F.P.’s activities, because it would produce a range of lightweight papers not made by N.Z.F.P. Sales in the first three months of this year were well ahead of the same period last year. The profit

['was also ahead, but had not reached forecast levels. The figures this year included the accounts of Trans : Holdings, Ltd. Last year’s results to June 30 did not. The Trans Holdings’ figures reflect tire slowdown in ■ tourism, both domestic and overseas, he said. I “This period is the off- ; season for tourism. U.E.B. ,has undertaken a plan of action to rationalise the touriism subsidiary and this may I take some time to implement.” Efforts which had been (put into the carpet division jwere paying off. The com-' ipany’s market share had in--1 creased substantially and results in the last year were 'ahead of those for the preivious two years. I Exports reached a new (peak at $28.6 million and !the company was looking at: a dramatic increase in | exports in the next two years. I Mr Papps told a share-! holder that N.Z. Forest Products would “facilitate the appointment” of two directors to the U.E.8.! board, and that U.E.B. would; have one representative on the N.Z.F.P. board.