Steel mill project 'not election ploy’

Press, 17 November 1981, Page 3

Steel mill project 'not election ploy’

PA Auckland The $7OO million expansion project at the Glenbrook steel mill had been thoroughly researched and was not an election ploy, said the Prime Minister (Mr Muldoon) at the mill site yesterdav.

He had flown in by helicopter to inspect progress on site, work for the expansion. He said, “This is no sudden. ethereal project which has conveniently materialised in November, 1981. New Zealand Steel, Ltd presented its basic plans for this development to Government officials in 1978.” Mr Muldoon said it had been suggested that the development should proceed only “on the basis of proven savings in overseas exchange and the production of steel at competitive prices.” The Government and the company were already satisfied with, calculations done in

these areas. The only way to prove or disprove the calculations was to go ahead and produce.

Mr Muldoon said. "We had already held back approval until we were satisfied beyond reasonable doubt that the go-ahead should be given. We all know the depressed state of the world steel market but this project is being built to be ready to take advantage of the’ expected upsurge.” Mr Muldoon said that the company had recently won a contract which involved the sale of 40.000 tonnes of billet steel valued at $l2 million. This was evidence of the company’s ability to find large export tonnages. Foreign-exchange earnings by the expanded mill w’ould be $l9O million a year, accumulating to $7OO million, which was not far short of the cost of the project, in 10 years.

The company's present permanent workforce of 1200 would double and many jobs would be available during the six-year construction period.

Once the expansion work was completed and production was under way- hundreds of jobs were likely to be created in other indirectly associated industries.

The mill’s development would make a wider range of finished products available to local steel users and the supply would be more reliable.

Mr Muldoon paid tribute to the late Sir Woolf Fisher for his work as head of the investigating company which led to the establishment of New' Zealand Steel. -Mr Muldoon said. "I feel that I am present at what may prove to be a milestone in New Zealand’s major industrial history."