500 Tyres A Day From New Auckland Factory

Northern Advocate, 25 August 1945, Page 3

500 Tyres A Day From New Auckland Factory

(Special AUCKLAND, This Day A statement that his company had set itself a normal production programme of 500 tyres a day, as well a? the necessary quantity of tubes, was made yesterday by Mr. G. C. W. Reid managing director of Reid New Zealand Rubber Mills, Ltd., when discussing the licences which had been granted to three companies for the manufacture of tyres in New Zealand.. Mr. Reid will leave New Zealand soon to purchase plant and equipment and to make other arrangements to establish the factory on a sound footing.

. Mr. Reid said the receipt of the licence would mean a very consideraole expansion in the company's business and ultimately an increase in its capital. The company proposed to build a tyre factory on its existing property at Ellerslie. where it was also expected to transfer the present Penrose plant next year. "We have an arrangement with the -B. F. Goodrich Co. of America, one of • the largest tyre and general rubber goods in the world, for the supply of technical data, assistance m the purchase and installation of tyre and tubq manufacturing plant, and a i s °. expert supervision in the training of New Zealand oneratives.” said Mr Reid.

Modern Methods "This will ensure that the tyres produced will be of satisfactory quality, equal to those which could be obtained under peacetime conditions, and that_ the production will proceed along efficient lines and modern processing methods.

. 'We have no restrictions to consider m the purchase of plant and equipment,” Mr. Reid continued, “but we anticipate that the main portions of it will be procured from Great Britain. Many of the smaller items and accessories will be supplied by the New Zealand engineering trade.” The value of the plant, buildings and equipment, Mr. Reid said, “will probably approximate £400.000. It is also estimated l ii e D'ro section oi our industry will call for the employment of an extra 000 male employees.

Mr. Reid said it was estimated that it would take about 18 months to establish the factory and arrive at a reasonable stage of production. If the two other companies to which licenses had been granted produced a comparable number of tyres the annual production for the °f New Zealand would be about Svo.OCO tyres, and it was estimated that this should supply normal requirements. ’ Over the last 12 months, Mr. Reid said, Ins company had gone exhaustively into the probable cost of its products and it telt confident that tyres could be made in New Zealand at prices considerably below those which were now ruling,

Not a Monopoly . “The Auckland industry,’’ he said, “will in no sense be a monopoly, as there will oe two other Arms manufacturing tv rex m New Zealand as competitors. There is no doubt, that the industry will be able io stand on its own feet, and if. is sigui Meant that New Zealand is one of the last countries in the world, on a comparable car registration basis, to have its own tyre industry. There is no suggeslion that the industry will require subsidising, and at no stage during the nego • nations was anything in tiie nature of a subsidy mentioned." Another point of interest, Mr. Reid said, was that in view of the serious situation in which New Zealand found itself during he war, and having regard to the critical tyre situation at present existing because of a, shoriage of raw materials, the establishment of this major industry in New Zealand should be of great value to the country. This was especially so from the point of view of defence.