TYRE MARKETING

Nelson Evening Mail, Volume 80, 29 August 1945, Page 3

TYRE MARKETING

THREE COMPANIES IN COMPETITION CHRISTCHURCH PLANS OUTLINED Wellington, August 28. The Firestone Tyre ami Rubber Company’s factory, which will be established in Christchurch, would produce 500 tyres a day. as well as an adequate number of lubes, and provide employment for nboyt 300 New Zealanders, stated Mr. A. U. Wells, manager of the Firestone Tyre Distributors Co., when interviewed concerning the recent granting of licences to three companies for the manufacture of tyres in the Dominion. He considered it would he up to about 18 months before the factory began to produce. The firm had had a great deal of experience in establishing new factories overseas. The procedure was to send out a special staff of about IS men who were not only expert craftsmen but were also first-class instructors. They would train approximately 300 New Zealanders Later they would be withdrawn, with the possible exception of one or two key men. It was Ihe firm’s policy to give preference to returned servicemen, said Mr. Wells, and it was felt that a very useful contribution would be made to rehabilitation. apart altogether from the large amount of employment that would be provided in the erection of the factory and plant. The parent company overseas would arrange for the purchase of the plant and equipment, which would cost about £600.000. Most of it would come from England, but wherever possible the firm would buy from local manufacturers. Probably about 18. months would ela pee before production could commence and by that time rubber should be coming from Malaya. Tt was not known what the rubber would cost or what the prices of the tyres would be, hut there was very little variation in the cost of production in any of the firm’s factories. Christchurch ha« been selected as, a site for the factory at the request of the Government, Mr. Wells explained, bin the location of the factory had no bearing on the field of the firm’s operations, as the three factories for which licences had la>en granted would sell their tyres in competition with one another anywhere in New Zealand. a« in the past. The firm contemplated buying 15 to 20 acres of land, which would be required not only for subsequent expansion, but also for recreational facilities for eraplovees. It was felt that New Zealand was In an excellent position to support the new industry, with motor registrations in excess of 300.000. said Mr. Wells. New Zealand had more registrations than any country in the world without. <tyre factories. India and Ceylon, with 151.177 registrations, had two factories. South Africa, with 391.608 registrations, had two factories ami a third in the course of construction, while Australia, with 808.- • »00 registrations had five factories. Canada had many factories and had been a large exporter of tyres for many vear«. ft was estimated that nearly 90 per vent, of New Zealand’s annual tyre requirements. amounting to 350.000 tyres, copld bo economically manufactured in the Dominion, while the balance, which would l>e made up of various odd sizes, would continue to be imported. Mr. Wells eaid he felt that the industry was assured of a bright future, for with the company’s experience, the size of the market and Ihe capacity of the New Zealand workers tyres could he produced which would compare favourably with ‘hose from any other country.