LOCAL INDUSTRY

New Zealand Herald, Volume LXXVI, Issue 23339, 6 May 1939, Page 15

LOCAL INDUSTRY

NEW FACTORIES THREE FOR WELLINGTON 'RESULT OF IMPORT BAN TOBACCO AND JELLY PRODUCTS Establishment of three factories in Wellington ns the .result of import restrictions was announced by business executives who arrived from Sydney by the Awatea yesterday. One factory, controlled by an Australian company, will manufacture cigarettes and tobacco, and another will produce dessert jellies formerly imported from Canada. Tho nature of the third factory was not disclosed, but it was stated that new machinery would be installed. "Rntlicr .than lose our goodwill, we have been forced into the establishment of a factory in New Zealand,"' said Mr. T. S. Varley, director of Godfrey Phillips (Australia) Proprietary, Limited, of Melbourne. "We have had 110 choice ill the matter, because of tho import regulations. Tho decision to build was reached at the beginning of tho year, and our plans have now been completed." 1 Mr. Varley declined to give tho figure that tho erection of the factory will involve, nor would ho indicate how extensive tho building would be. He said a reasonably large number of hands would be employed. Mr. Varley left for Wellington by tho limited express, last night, and will remain in New Zealand for an indefinite period, after - final arrangements have been discussed.

An importer whoso business was practically wiped out by the restrictions, Mr. N. W. Stevens, of Wellington, said that during liis visit to Sydney he arranged final details for opening a factory to make jellies. He had been in constant touch with the Canadian manufacturers of a product now banned from New Zealand, and thej had supplied full details of manufacture. Jellies identical with those supplied from Canada would bo made, and a sample from every batch would be sent to Canada to safeguard the standard. The cost of building the f ac " tory was not given, but he said a stall of about 25 would be employed. Mr. Stevens will stay in Auckland for some days before proceeding to Wellington.

EXPANSION REPORTED REVIEW BY MINISTER EXTENSIONS OF BUSINESS INCREASE IN EMPLOYMENT "New Zealand manufacturers con■tinue to report additions to their plant and machinery and increases in the number of their employees,'' said the Minister of Industries and Commcice, the Hon. D. G. Sullivan, in an interview yesterday.

An Auckland Biscuit factory recently installed a new conveyer at a cost of about £2500, making the fourth of their new units, the Minister said, it had put on an extra 15 to 20 employees and with the completion of its plant would ultimately employ approximately 25 to 30 more. A millinery concern would be moving next week into new premises which cost about £21,000. A Wellington paint manufacturing company had increased its capital by £15,000, from £35,000 to £50,000 which was indicative of its expected expansion in production. An engineering firm was going ahead with proposals for manufacturing electrical rectifiers, tho raw materials of which would represent about 25 per cent of the finished product. One of the largest •importers of cigarettes in the past had advised that the portion of its plant which had to bo imported had now arrived, valued at approximately £OOOO, and production of further popular lines of cigarettes would bo commenced in New Zealand shortly. A Christchurch brush manufacturing concern proposed shortly to manufacture a material which it was anticipated would substantially take the place of imported materials used extensivelv in train, bus and similar seats, Mr. Sullivan continued. An engineering firm had recently developed an agricultural implement i;i the form of a top-dresser, the principle of which was a vibration method of distribution of seed and manures conjointly. Another Christchurch concern proposed to manufacture and market a New Zea-land-made carpet sweeper. Marketing would be made through hardware and furnishing stores in the same manner as overseas carpet sweepers were handled at present. From Dunedin had come reports of two local firms acting 'conjointly in a proposal to extend the manufacture of waxed wrappers for packing purposes, the Minister added. If these proposals were finalised it was anticipated that employment will be given to approximately 35 workers and machinery to the value of about £6OOO would be required. An engineering firm advised that as "a direct result of the import restrictions it had recently been making a special typo of top-dresser for 3 local firm which formerly imported theso implements. Arrangements had almost been completed for a local firm to commence the manufacture of stainless steel forks and spoons in Dunedin. An additional unit had been opened during recent weeks for making millinery.