Plastics industry cautious

Press, 16 September 1982, Page 27

Plastics industry cautious

PA . Wellington Any considerations of establishing an ethylene plant as a raw materials source for domestic plastics manufacture must be tempered by a knowledge of the real costs involved and the resultant benefits, said the Plastics Institute’s executive director, Mr Bruce'Dunlop. Commenting on reports that the Prime Minister, Mr Muldoon, was visiting Canada’s Nova Corporation in Calgary and discussing the use of the ethane content in

New Zealand’s natural gas reserves, Mr Dunlop said the institute supported, in principal. the early establishment of an economic, viable, and internationally price-com-petitive plastics raw materials manuiacturing industry in New Zealand, based on indigenous resources. “Ours is not a 'wet-blanket’ approach — just an economically necessary one," he said. .. “While we welcome the opportunity for continuity of some raw materials supply,

the cost of producing' ethylene must be held in relation to the cost’ of output and bear close relation to world market prices." The New Zealand plastics industry got its raw materials (ethylene is one of many different types) on the world market and was not reliant upon any one, producer. Mr Dunlop said. “World-sourced resins give local plastics manufacturers a competitive edge in international markets, particularly Australia. “Australian domestic

manufacturers suffer the penalty of an indigenous raw materials manufacturing industry by paying a premium on world prices, as a protective mechanism for its petrochemicals industry. “A very close analysis of the costs and benefits of such a New Zealand operation must be undertaken, and by virtue of experience in this sphere, the pasties industry must be a prime party in any discussions and planning. "We have an assurance from the Government that we will."