Plant saves $15M overseas funds

Press, 19 February 1983, Page 20

Plant saves $15M overseas funds

PA Auckland A Mt Maunganui plant will soon convert wood pulp waste into high-quality turpentine and tall oil. which will trim New Zealand's balance of payments deficit by $l5 million a year. The Pine Chemicals N.Z.. Ltd. plant, a 50-50 joint venture between N.Z. Forest Products and Tasman Forest Industries, should be on stream in August. It plans to export 70 per cent of what it produces. Long-term contracts are being negotiated with Japanese. British, and Australian interests, and exports are expected to total $9 million a year.

At present, a crude turpentine is exported to Japan in Forest Products' and Tasman waste, but the plant will take over the waste by distilling the produce at home.

Import substitution - the plant will produce alpha pinene (used in disinfectants and detergents) and beta pinene (resins and fragrances) — will save New Zealand a further $6 million. Pine Chemicals' general

manager. Mr Ken Aiderton. said yesterday that the plant would be able to cope with 12.000 tonnes of pulp waste a year — 2000 tonnes more than the present output of Kawerati and Kinleith. Two-thirds of the feed stock would come from Kinleith. and the balance from Kawerau. “These crude materials are currently being exported to Japan and all we are doing is bringing the process back here. The total sales, something in the range of $l5 million, will directly affect our balance of payments by that amount." He said that the $23 million plant was a tribute to co-operation between the managing directors of Tasman and Forest products. It was designed to meet advanced environmental and safety standards. "We had to design a plant that was more applicable to what we think will be the design standards in 1990 rather than in 1980." The plant, which is highlighted by a 40m high tall oil fractional plant based on the Swiss Luwa process.

will include sections for rosin size manufacture and turpentine and pine oil production.

It will employ 23 people, most recruited from the Mt Maunganui area. Similar plants exist in North America. Japan, and South Africa but Mr Aiderton is confident that foreign markets will be found for Pine Chemicals' products. Mt Maunganui was selected as the site for the plant because of its modern port facilities and rail access. Pine Chemicals was formed in 1981 after studies intd the feasibility of setting up a New Zealand plant. Crude turpentine before 1970 was distilled in New Zealand by A. C. Nottingham of Christchurch. The beta pinene product was recovered for export sales and the alpha pinene converted to pine oil for New Zealand and Australian markets. The plant closed in 1971 but tall oil fractionation was kept under review by N.Z.F.P. and Tasman until an inaugural meeting of the two companies in 1979 to look at the project.