N.Z. Cement doing well

Press, 5 December 1981, Page 19

N.Z. Cement doing well

Since August, the sales of New Zealand Cement Holdings. Ltd, were markedly better than those of the corresponding period last year, said the chairman, Mr P. H. Scott, at the annual meeting yesterday. Exports were also ahead of previous levels. “It is encouraging to see that cement sales in Auckland and Canterbury, two of the company’s major markets, are rising after six years of almost constant decline. “Sales in other areas of New Zealand tend to be more stable than those in Auckland and Canterbury, where much greater fluctuations in economic activity are experienced," he said. Although caution was necessary in forecasting construction activity, the number of building permits issued in the latest September quarter were 23 per cent higher than in 1980. If this pattern continued, cement sales would rise. ■ “However, there is still a

long way to go before national demand regains its former levels, and Government policy next year will have a major impact on results," Mr Scott, said. The present demand for cement was expected to continue into 1982, and the company looked forward to a steady period of recovery in the longer term. The company was in a sound position to meet demand as the market picked up, and plans had been made to increase production at the Westport works. A great deal of work had been complemented on the Oamaru project, and funding requirements were being studied, he said. The capital cost of the new works was expected to be about $125 million (in 1981 dollars), and for a project of that size, the raising of sufficient funds was a complex task which would take time to arrange. “In the meantime, some additional capital may become necessary to finance existing operations."