ICI sees upswing

Press, 22 December 1981, Page 24

ICI sees upswing

The increased activity of ICI New Zealand, Ltd, in the last few months of its financial year, augured well for the first half of 1982, said the chairman, Mr E. W. N. Jackson, in the annual report.

The first half of the last financial year was disappointing, and sales were marginally ahead of the previous corresponding period. However, in the second half sales rose 16.6 per cent to $105.4 million, to give an over-all yearly increase of 9 per cent. To ensure the long-term viability of the group in research and technology, plans to establish a corporate research laboratory were announced as the first step in pursuit of potentially high return projects, particularly in the biological field, he said.

The joint venture with Wattie Industries, Ltd, to explore the old Broken Hills gold mine, near Tairua, in the Coromandel Peninsula, had not yet uncovered a major ore body. “The venture is seeking a third partner to continue prospecting,” Mr Jackson said.

An invitation was accepted from Kauri Deposit Surveys, Ltd, to participate in an evaluation of the extraction of natural resin and waxes from the Kaimaumau peat swamp in Northland. The 2200 ha swamp was estimated to contain more than 500,000 tonnes of kauri resin and associated wax. A programme to determine markets, mining, and extraction processes was initiated, he said.

The group had also successfully negotiated a distribution arrangement for industrial urea and ammonia from the Kapuni project, which was due on-stream in 1982. The sale of resin was satisfactory during the 1981 year, in spite of reduced home building and the closing of a wood panel plant in Christchurch.

“By 1983 these resins will be produced from New Zealand made methanol and urea, which are expected to be available at world prices.” Since the commissioning of the new explosives factory at Waitawa in March, output had expanded and the strong

and increasing sales in “Molanite” explosives provided proof of the high quality produced. The most diappointing feature of the year was the demise of Fibremakers New Zealand, Ltd, the whollyowned subsidiary, after the Government withdrew import licence and tariff protection on imported synthetic yarns.

During the year it became necessary to decide to close the factory, as the subsidiary was faced with a diminishing market. The effects of Fibremakers’ difficult year,, together with redundancy pay provisions and closure, were reflected in the final results of the group, Mr Jackson said. An extraordinary provision of $400,000 was allowed because of the expected closedown costs of Fibremakers.

As reported, the group net equity profit rose 15.5 per cent to $8,021,000 in the year to September 30. The final figure included extraordinary losses of $416,000 ($167,000 previously), and a loss of $22,000 from associated companies, compared with $321,000 profit previously.