N.Z. Steel to market with German firm

Press, 20 October 1981, Page 24

N.Z. Steel to market with German firm

PA Auckland .. New Zealand Steel. Ltd, expects no problems placing the 600,000 tonnes of semifinished steel to be produced under the planned development programme in the two or three years before the associated ’ roller mills are commissioned.

The company’s marketing manager (Mr Alex Green) aid that N.Z. Steel is discussing the possibility of a joint venture marketing company with a West German firm. Ferrostaal AG. which already has commitments to supply about 2 million tonnes of slab and billet steel. "Under the deal we would be offered loan finance on the strength of sales contracts to the joint venture

company.” he said’. Ferrostaal had recently acquired 70 per cent of the capital of the Balfour Guthrie company, in the U.S. N.Z. Steel had a long association with Balfour Guthrie, making most of its sales to the west coast of North America through that firm. The yearly export tonnage of semi-finished steel would represent about five per cent at the most of total international trade in this product. „ . Meanwhile, N.Z. Steel s managing director (Mr John Ingram) has said that the company needed Government approval for the project long before now. ’ “We need this so we can put the detailed financial

plan before shareholders ” Site preparation should begin if seasonal delays were to be avoided, Mr Ingram said.

"The work involves clearing about 500.000 cubic metres of earth and will cost nearly $3 million,” he said.

The company needed to complete this so construction work on stage one could start without hindrance and so the company could take advantage of the lower rates currently prevailing in the construction industry because of its depressed state.

Mr Ingram denied there was inadequate labour available to undertake the development programme.