N.Z. Cement steady

Press, 28 November 1980, Page 8

N.Z. Cement steady

The results of New Zealand Cement Holdings, Ltd, since the July 31 balance date, had shown the same trends as those that prevailed towards the end of the financial year, said the chairman (Mr P. H. Scott) at the annual meeting yesterday. . However, the medium prospects were brighter, and the company would be able to increase production when required. Exports were buoyant, but New Zealand sales were down on the same months last year. However, the decline in building may have bottomed, and if this was the case, then some improvement was possible, he said. “The company has recently won a number of useful contracts, including the supply of cement for concrete railway sleepers in the North and South Islands. “But, so far as the building industry in general, and the cement industry in particular, is concerned, the plain facts are that construction demand has fallen in New Zealand in the last five years and shows little sign of picking up in the immediate iuture.” There were a number of hopeful indications, particularly in relation to the large capital works for energy development which should stimulate the econmy

in the mid-1980s, Mr Scott said.

Tenders for the main items of equipment for the proposed Oamaru cement works closed in September and work on evaluating these was well under way. Financial studies would shortly be carried out using advanced computer techniques, and the board would then be a position to decide on the next step. “The present uncertainty about New Zealand’s construction industry must not obscure the need for modern cement manufacturing plant to meet future local and export market requirements,” he said. In answering a shareholder’s question, the managing director, Mr D. M. Wilson, said that N.Z. Cement was looking for new

fuel sources to supply both the manufacturing works at Bumside and Westport, and also the proposed new works at Oamaru. The cost of energy applied to all industries, and the cement industry was no eception. “The cost of coal was a fairly significent factor in cement production, and I believe that to cope with the future we will have to explore and find the best options available,” he said.