STEEL WORKS

New Zealand Herald, Volume LXXV, Issue 23109, 6 August 1938, Page 16

STEEL WORKS

DOMINION SCHEME BRITISH INDUSTRY NEGOTIATION REPORTED ESTABLISHING PLANT By Telegraph—Press Association —Copyright LONDON. August -1 The New Zealand Government is negotiating . with the British Iron and Steel Federation for the establishment of a steel manufacturing plant in New Zealand, says the Daily Herald.

Tho Dominion is willing to accept technical advice from tho federation, the paper says, although the capital will probably bo raised in the Dominion, partly from Government sources.

Tho announcement comes at a moment when the British industry is 'slipping into a new depression, in spite 'of rearmament. Pig iron production has decreased 30 per cent, compared ~;with last year, and steel 34 per cent. Tho British industry is working at 'about 60 per cent of its capacity, pro'duction being, under 10,000,000 tons annually, compared with Germany's •20,000,000. Share values have fallen Steeply. NO MAJOR DECISIONS COMMENT BY MINISTER MORE "PROSPECTING FIRST PRELIMINARY DISCUSSIONS [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday Commenting in an interview to-night on tho cablegram from London, tho Minister in charge of the State Iron and Steel Department, the Hon. D. G. Sullivan, said: "Discussions of a preliminary nature have taken place and our relations with the British Steel Federation aro very good. No major decisions, however, have been made by the Government or will be made in any direction, until the prospecting work now being carried out at Onekaka has been much more advanced than is the case at present. 6 "It may be some time before any announcement can be made," the Minister added, "but the necessary testing in regard to the quantities and .the quality of materials is being pushed ahead as rapidly as possible. In the meantime, the New Zealand Government will do all it Can to ensure the maximum trade with the United