Joint venture for N.Z. gas vessels

Press, 15 May 1985, Page 37

Joint venture for N.Z. gas vessels

PA Wellington Chase Industries, Ltd, a subsidiary of Chase Corporation, Ltd, will form a new joint venture with a Baker Group Corporation, Ltd, subsidiary, Dye Industries Consolidated, Ltd. Mr Edward Boyd, managing director of Chase Industries Ltd said the new joint venture company, HiGas Industries, Ltd, has been formed to manufacture a wide range of high pressure gas vessels for the industrial and automotive markets in New Zealand and overseas. It represented an investment approaching $lO million, he said. The equipment for the new company, purchased from Tubemakers (Australia) Ltd of Adelaide, is being dismantled and shipped to New Zealand. It will be installed in a new factory in Wiri.

The company is expected to be fully operational early in 1986.

The high pressure gas vessel market has been traditionally supplied solely by imports representing about $4O million.

The plant will be the only one of its kind in Oceania and will have surplus production capacity for export.

The establishment of HiGas Industries indicates the opportunities that exist for creating new industry in New Zealand to compete with imported products’and at the same time establish export sales potential, said Mr Boyd. Dye Industries is New Zealand’s major manufacturer of LPG tanks for automotive use.

Meanwhile the Baker Group yesterday declared a maiden profit "of $2,378,150 for the year to March 31. It also announced a l-for-8 cash issue at 200 c a share, to be followed by a l-for-5 bonus issue.

Baker, which deals in property development, building and engineering, said the profit was more than 50 per cent above that projected whej; the company’s shares

were listed on the Stock Exchange in August. Trading profit after tax of $356,884 was $629,858. Unrealised development margins of $3,178,712 less deferred tax of $1,430,420 added $1,748,292 to the profit. The final dividend will be 4c a share or 8 per cent, tax-free, to be paid in August. It follows a 3c a share interim dividend.

The rights issue will be of 50c ordinary shares at a premium of 150 c and will be one share for each eight shares or options held. It will raise $2.2M and the company’s major shareholders, including Chase Corporation which owns 30 per cent of Baker, have indicated they will take up their full entitlement.

Immediately following the cash issue will be a one-for-five bonus issue of ordinary shares on increased capital. The new shares and bonus shares do not qualify for the final dividend due in August. Existing shares will be quoted ex rights and bonus on May 23, and the books close on May 27.