PROPOSED STEEL WORKS

Otago Daily Times, Issue 22353, 29 August 1934, Page 8

PROPOSED STEEL WORKS

DUNEDIN MEN iNTERESTBE) COMPANY FORCED IN GREAT BRITAIN During the - past day or itiro Daily Times' reporter has been making some in> quiries regarding Pacific Steel, Ltd** which has figured prominently in. cohuec-. tion -ivitb. - the -proposal ,to L ex-, tensive steel works in the a restllt it was learned that. Pacific Steel, Ltd., is a company which:' was/ibcorpor-r ated in Great Britain, and of.'.which the directors and .shareholders’ are all .-NewZealand men.. , It: was. established Vi the. beginning of last yeaor by- Messbs 'lan tj.’Macdonald, J. C. Clark, and'A; Pv F, Watson, the two first-named vbcing- '-exresidents of Dunedin, iyh y .'■} ' The' objects of; the company . were "to take over the 1 .interests- of - ihp 'Onakaka Iron and Steel Company and-; pthgr rights over- minerals, properties,- ;etc.'* which were considered.-necessary- in the establishment of the , proposed ■ steel industry.. , The .company;, aimed; atV the establishment of amup-to-dace eteel-workK iu the Dominion for the making of-rails, joists, : girders, channels, plates, sheets",' tub.es,- wire, bar,'holt and rod, 'arid:htheisections. - its; original odpitai was, subscribed- by,-- the three.: btigmai directors, {and has { since been; added to, It Was infeniied--. that' the Cater, fully for the. New Zealand ;{inarket and; in - addition-it was anticipated that it- should enter, tp-.a -cbnaiderablefextcnt in the overseas markets.. {y y-yy; ; ,.v

■f ’ After going > fully into the facts.' and figures available,; consistent with the- objects in view, ifid after 'cpnsidbrihk recommendations {put forward inrregaxdTb various firms, of’ reputable cdh’aultlhg 'en-gineers,-the directors enlist the services of, Messrs- H. A; Brassert and Co{, of: Wallbrook, London;. .consulting engineers in 'i the: iron ;-aad istebl ifidfisitrieß, fo'r: the investigating;:anil mef porting; to- the company on of establishing.ktcei,wprks ofi. an economic basis in New Zealand. ~ This ; company, acting, on facts and "’statistic's to it ..by . the England aijd. jD: : New Zealand ) ' , subrhitted a, preliminary report. N pn The i:Droppaal-: tb Pacific Steel, Ltdi ■ Inthp obtaining bf the ihfbrmatibn in-EnglahdiThfe'pffiCials>bf the New Zealand High- Commissioner's: Office WerAbxtrbme|y;helpftti*' that-thn development of, NeW'ZpalanSjfrbpi notft bn rnhst; proceedfon'.ihdufetfial; lines pbte. ' it-'was ' essCiitial that tbe basic {industry of: iron'and steel' established- 4 The conclusion of .the preliminary investigation : was ‘ that ,'Ndw:; Zealand had.'an ' adequate; reserve-, of {.iron ore. limestone, .etc., to. form the > basis ofi iron arid ‘steel; .pfpduotibn,;: bnywhat feokfe 'depended oh investigation oif -,the ; - field Jte New, Zealand ofhtne equality and mining costsof the-ore,.etc. ■ y.,'fi .vy-Kv i -

1 /GOVERNMENT ASSISTANCE : After obtaining- the preliminary the directors arranged with Messrs Braisert’ and Go; to'bend’ twb' highlytoualified experts to New Zealand,,.for -tne/ purposev- Of making th- ifirial detailed /yOpopfc on’ the -pfopoisaL'’' Oh/the amvM'in/New Zea3and':of .:the..-dixlectors,-;,the New- Zealand; Government/.was approached-; and negotiations,- were.-garried. ,out- with securing hssursh'ces from. thei-GOvernrhent in regard to ; affeetihg .the ecofiomic festablishhieht: of inch? attThdu?; try.-- Shortly after this Mi' an accOuritant of Timifu, assbejatedr'himself' with/the, bompany. The 'Unemploymfent Boardr at - this stage - became interested,,.and agreed to subscribe t6;;the xbet of bringing; experts to New Zealand to the extent'of onebalf. and ’to a ,maximum -amount 4 of £2500. / -V.« ;

; , EXPERTS’, INVESTIGATION i ; Doiuinjon / tlje,,/, two;,./expertscomment'":» tHofojjdb ,;etominatiqnto;qf//t^ throUgboufc.toe‘eohHhry;tfahapqjt/facilities/fetc,- .Possible. siteß.bf. l 0p fc acrea'or mi?f fe/-.ibrX thfe: ’ economic'/ astoffiblyi3qT*tfih raw materialSj' with/; 1 rail ' access, -fresh water' 'supply, .acceeii-- ! bility to . xnacke^,; werevisitfed : 6r investigated.-- 1 W'asVcbmplfetedrlaat 4 J.’ -W. :HQldeaand'O r R.:^ representatives of, BraßScrt' 'ahdfCo.,;ieffc Auckland’for Lohabifii. r'{t ,V.to. ; -.". to' : It it believed’ that- Professor .-.Tocker,,' of .Canterbury College, who v was/asked ./to. Submit a .report-mh the economic 'aspect of the scheme, reported at length .qn tha advantages to- befderived by the Dothinion from the establishraehfe'of -abisife; industry Such as. this and the -consequent growth ofadditional; industries; favoured/ by.. thfe supply, of; 'steel-', at a/lower /cost ThAil/it is-, now ;-•/,/ - >' ,

coal INTERESTED^ It is understood that possible sites for ihe establiehriirint of The-nrirks.'-arC land, Dunedin, ' arid - Onakaka.-It'« lieved that th’d, coal,: miriing- 'cerijtfefers ■ Huntly, Kaitarigata, and .Nightcaps—are all - keenly interested ,in' thfe ptospeci lOf : the possible .■ utilisation of .'crisis; The. coiripanies- in These.'centres, y it is stated,: are sending shipments pf coa! to Erifflririd for the?purpos<y-. of • hiving Uherix tested in; the- “ Knowles ” cokd; dvfens -ipstaljed at . the new stejsl works, which are being erected; for: Messrs Stewart aria Lloyd at: Corby, Northarit&;£ .-v'• : C 'ln this. connection ; advices . from. Auckland state that a consignment of 50. tons of Waikato coal is to be shipped,xO ,England front Auckland by the : ppriwa' fop experimental ■ ppriposeri in qSnriectrpfi iwith the. investigations. T2ie:objgct> i»: to .ascertain whether. Waikato lignite coal, of which’ Very large supplies -are- availabloi can ; he. metallurgical,' coke' for biinii.rig in bblast furnaces. -.Lignite is definitely^riot.suitable for’ coke-making. by the ordinary pfocessi employed • at steeb works,; but ar, pen'er process, has been devised in. which residual fuel, oil is added, to the coal. The . test consignment is bcingtshipped : iri;. 16- 400gallon steel tahks will be used, to prevent, cheriiical cliangef due to exposure to air. ■' ■ FINANCIAL SUPRSRT The report will .be subniiHed'/iri due ijouis-e to the directors ot-PacificbStetl, Ltd. If the report is.favourable, finance will be available from London tri ’the extent of £2,000,006, . , ■