Chenery has plans for expansion

Press, 1 September 1980, Page 28

Chenery has plans for expansion

Chenery Holdings, Ltd, plans to increase its manufacturing capacity to meet a higher demand for . its products.

The Acting chairman (Mr K. McK. Wilson) told the annual meeting that extension of existing capacity would be achieved through acquisition of new plant, an increase in productive hours, and the offering .of more employment opportunities. . ’ He said that export sales in the first five months this year were above those in the corresponding period last year. New markets . were being sought continually. Contracting activities, however, continued at the lower rate of the previous year, and the forward workload was not at a satisfactory level.

“The short-term prospects for the building industry in this country are not good and the directors are of the opinion that no real growth in this aspect of the company operations will 7be achieved even in the medium term,” he said.

Because the industry was depressed locally, Mr Wilson

said, Chenery was negotiate ing offshore projects. If sue-* cessful those projects would improve the performance of the major contracting subsidiary. Mr Wilson urged the Government to lift its curb on Capital expenditure, particularly in the Auckland area, to stimulate the contracting industry. .J He said that, although the board still was looking for diversification due regard had to be given to employees and their skills

It was announced at the meeting that Chenery had taken a 39 per cent interest in a joint-venture company which manufactured the Polytherm plumbing system. Mr Wilson said market reaction to the system had been excellent.