Tasman's half year profit $26.9M

Press, 22 November 1980, Page 19

Tasman's half year profit $26.9M

• pA Auckland! i ! . Tasman Pulp and Paper; • Company, Ltd. has reported! • a 68 per cent increase in , export sales in its half-year-.;; • Iv result, and a six-monthlvC 1 p'rofit of $26,900,000. . Commenting on this re- : stilt, the chairman (Mr R. R.,, , Trotter) said, “The industry, : is a cyclical one and, with • the fourth newsprint mach- ! ine at Kawerau costing' ■ about $2OO million, we need ' this level of profit to fund:' ; the project and justify the risks involved. C

1 “The machine will earn upi Ito $7O million a year in net I foreign exchange, which will! ! be sufficient to permit the: creation of 10,000 jobs for, (New Zealanders,” Mr Trotter; 'said. Total sales to September 30 were SI 40.200,000 of (which 5102.100.000 were 'exports. i Tire company has declared • an interim dividend of 10c a share (20 per cent) on the : ordinary shares. 1 The directors said that the company was still enjoying a strong international demand for newsprint, and that they expected the de-j mand to continue this year, j However, they said that] world capacity was becom-q ing more closely balanced; with demand. i. Over-all production at Ka- j 1 werau had increased during J the last 12 months, which! Mr Trotter attributed to an ■ ’ active capita! expenditure! i

i programme to improve productivity. and a more (favourable industrial relations climate. Ute directors said news- ■ print production rose 11.6 (per cent and the pulp mill. While providing for this increase, had also maintained its output of market pulp at last year’s level. Production of sawn timber remained steady. Notwithstanding the increased output, the mill had achieved a 15 per cent sav- ■ ing in fuel costs in the production of processed steam. The directors ’ reported that a start had been made on capital expenditure projects totalling S24M, including a SI3M project to modernise and expand existing plant for the production of chlorine and caustic soda, using the latest technology from Japan. The new chlorine plant will double existing capacity.