MILLIONS FROM GERMAN DYES

Otago Daily Times, Issue 18349, 13 September 1921, Page 6

MILLIONS FROM GERMAN DYES

PROFITS EQUAL THIRD OF TRUST CAPITAL. JAPAN’S COMPETITION. HOTHOUSE DEVELOPMENT IN THREE YEARS. Mr George Renwick writes in the Daily Chronicle, his despatch being forwarded from Berlin: It is now possible to survey the results achieved during 1920 of six. of the seven firms of the great German Dye Trust, which, before the war, supplied 85 per cent, of Germany’s requirements in dyes and did a big foreign trade. The working capital of the six firms during the year was 731,000,000 marks. That amount has, as I have already reported, been very largely increased. In 1919 the increase in the not' profits w«s about 50,000,000 marks, but in the following 12 months an increase of 145,400,000 marks in: the: profits was achieved. The six firms made a total net profit of 249,600,000 marks, which is a trifle more _ than one-third of their capital. Other interesting figures are:— Distributed in dividends: 130,300,000 marks—an increase of 75,200,000 marks as compared with 1919. Placed to reserve: 99,000,000 marks—an increase of 65,900,000 marks. ' ’ Amount carried forward: 12,600,000 marks—an increase of 2,300,000 marks. The dividends vary from 15 to 20 per cent., and all have bean increased. FOREIGN COMPETITION. The reports state that the business done during the year was in every way satisfactory. , During toe_ earlier part of that period there was a big foreign demand for dyes, but later the competition of foreign firms was felt. The prospects, however, ore regarded as bright. But Germany is rot going to have it all her own way. A prominent authority tells me that American and English competition is not very greatly feared, because in both countries. the, ! amount of capital invested in textile,,and dye concerns respectively is as 20d to 1. That does not give evidence of a capacity to supply the home market to anything like a sufficient extent. Messrs Bayer and Company, of Lever- ' kusen, one of the biggest firms in the German trust, are now making 3COO varieties of dyes. The Swedish dye industry, which made good progress during the war, is now regarded as practically out of the running. The efforts being made by Japan and other countries, however, cause some anxiety to German dye manufacturers. JAPANESE DYE FIRMS. Before the world-war, Japan obtained most of , bier, . dyestuffs from Germany. Then aha" went to Switzerland, the United Stages, and England for them. In 1920 the United States sent her 1,750,0001 b of dyes, while Germany’s quota was 154,5001 b, though in 1319 it was only 28,C001b. In 1918 Japan had one hundred dye firms with a capital of 14,000,000 yen, and a production of 12,000,0001 b of aye. From January 1 to August 1, 1920, no fewer than 124 firms were set up with a capital of 153,000,000 yen. Twenty-four firms increased their capital by 77,000,000 yen. Of firms entirely or partly engaged in turning out dyestuffs, there were in Japan:— In 1914 87 In 1918 471 In 1919 : 392 ' OPPOSITION FROM CANADA. The Japanese dye industry, as the above figures show to some extent, is undergoing a crisis similar to that in England. A number of firms have had to close down, but the Japanese are going to make a big effort to “win through/’ Germany is meeting with unexpected opposition in Canada, Holland, and Switzerland; where the dye and chemical industries are progressing satisfactorily. Belgium, too, is doing well. Formerly one of Germany’s best markets, her tar dyes and those for high-class silks, cannot be beaten by the Germans. Of all these countries Switzerland is probably Germany’s most serious competitor. <P, ■mil■! ■!!tmmmmmmmmmmmmmmmm