UEB expansion

Press, 21 May 1982, Page 16

UEB expansion

UEB Industries. Ltd. has completed extensions costing more than $8 million -at its Awatoto carpet yarn manufacturing plant near Napier. New machinery from Belgium. Germany, and the United Kingdom, increases the mill’s capacity by about 60 per cent. This will increase the company’s consumption of wool to more than 50,000 bales a year. Sixty per cent or about 30,000 bales a year, will come from Hawkes Bay woolgrowers. The Minister of Labour (Mr Bolger) commissioned the extensions at a function held at the plant and attended by UEB's board of directors and leading New Zealand carpet retailers. The installation programme was undertaken during the past year to replace capacity lost after fire destroyed the company's yarn spinning mill near Invercargill in April, 1981. The layout of the Awatoto mill was '.reorganised to achieve better production flows and economics and to accommodate the new equipment without having to erect additional buildings. The plant was able to maintain production levels in spite of disruption caused by installation work. The extensions have created new jobs in the Napier area. The plant now employs 58 more people than it did a year ago.

At the commissioning the chairman of UEB (Mr L. M. Papps) said that, carpet manufactured wholly or largely from synthetic fibres was the real threat to the carpet industry in New Zealand.

He urged the Government to give careful consideration to the industry’s position under CER and to consult with it to ensure present advantages are nurtured to grow to many times their size.

“Neither New Zealand nor Australia has the market size to compete with the large North America producers in the synthetic carpet field,” said Mr Papps. “In New Zealand we have in plentitude the world’s greatest fibre for carpet manufacture which is wool. Our economy relies very heavily on earnings obtained overseas from the sheep growing industry. “UEB is promoting the use of wool as a carpet fibre in the wealthier markets of the world and in doing this we are aiding the growth in profitable returns for wool by showing, and selling the best products made from wool.”

Mr Papps said that under the NAFTA agreement the New Zealand carpet industry could export 3.2 million square metres of all-wool carpet a year to Australia. This represented eight per

cent of the Australian market.

' In return, Australian carpet manufacturers had the right to export 1.1 million square metres a year to New Zealand, representing 20-per cent of the New Zealand market.

Synthetic carpet was not included in the agreement. “I sometimes believe that New Zealanders do not realise just how great is the asset ot skill which the country possesses in the processing of wool fibre into yarn and carpet. “UEB exports large quantities of yarn as well as carpet. The yarn business is sharply competitive and has room. for . considerable growth,” he said. Mr Papps said the $8 million capital investment at UEB's Napier yarn mill reflected the company’s commitment to wool.

The company was investing, heavily in all areas of its operations to achieve greater efficiency and quality. In the year ended March 31, last it spent mofe than $2l million on this programme, and for the current year the figure would be $l6 million.