EXTENSION OF PLANT

Dominion, Volume 31, Issue 179, 27 April 1938, Page 14

EXTENSION OF PLANT

Australian Iron And Steel PORT KEMBLA WORKS The directors of Australian Iron and Steel Ltd. have decided upon further extensions of the plant at Port Kembla. The capacity will be increased considerably, and costs are expected to fall. At the annual meeting in Melbourne the chairman, Mr. Harold Darling, said that there would be a further increase ill ingot capacity. The ingot capacity ot the Port Kembla works would be 500,000 tons n year. The new blast furnaces, with a capacity vt 1000 tons a day, should be blown in about the middle of May. This would give u much needed increase in pig iron supply and would be of great benefit not only ro the Port Kembla works but also to the Broken Hill Proprietary works nt Newcastle. ‘■Australia has been practically denuded of scrap.” Mr. Darling said, "and most of this material available is of poor quality and expensive. The additional supply of pig iron will lessen our requirements in this direction. The continuous billet and sheet bar mill should be in operation during the current year. ‘.‘The Commonweal’.b Rolling Mills have purchased a large block of land at Port Kembla and are now constructing a plant ro manufacture motor body and other high-f'lass sheets- for the Australasian market. This is a new outlet for steel. The consequent demand for sheet bar together with the demand from John Lysaght Ltd. for their biack and galvanised sheet plant, now under construction at Port Kembla, will make a very useful load on the new mill, and at ths same time will reduce cost of manufacturing for the billet supply to the 10-ineh and 13inch merchant mill. This mill’s capacity lias been increased by the installation of a mechanical cooling bed, additional roll stands, and, of major importance, a larger heating furnace. The new additions and arrangements for the 10-inch and 13inch mills should be completed by the end of May. “The effect of all these improvements is in the direction of lower costs and greater rolling capacity,” Mr. Darling added.

At an extraordinary meeting shareholders agreed to increase tho nominal capital of £8,500,000 by the creation of 3,500.000 ordinary shares of £1 each. It is proposed to negotiate with the Broken Hill Proprietary Co., Ltd., which already owns all the ordinary capital, for the acquisition by it of ordinary shares to the value of £2.000,000, in liquidation of the major portion of advances made to Australian Iron and Steel Ltd.