WOOD PULP

Otago Daily Times, Issue 26782, 27 May 1948, Page 7

WOOD PULP

INCREASE IN PRICE A WORLD SHORTAGE The cost of first-grade wood pulp on dumps at the company’s mills at Mataura was £l2 a ton, pre-war, compared with £62 a ton to-day, Mr T. Somerville said in his report to the annual meeting of shareholders of New Zealand Paper Mills. Ltd., in Dunedin yesterday. Because of unsatisfactory shipping conditions overseas and the consequent delay in loadings, stocks at the mill dumps had become dangerously low. In addition, a world shortage of ‘pulp had materialised. Paper production began in New Zealand 70 years ago, the report continued, and the' first wrapping paper made in 1873 was now on loan to the industries section of the Otago Museum. At this time a bonus of £SOO was offered by the then Provincial Council to the manufacturer of the first 50 tons of paper. The prize was keenly contested, and production began almost simultaneously at Woodhaugh and Mataura, both mills then being private ventures. The combined production of these two mills reached only 225 tons a year. By 1895, with another mill at Riverhead, Auckland, the combined annual output reached 2400 tons. In 1904 New Zealand Paper Mills, Ltd., was formed to absorb the interests of the three existing concerns, and further expansion was planned. A disastrous fire at Woodhaugh Mill in 1911, and a heavy flood in 1913 at Mataura, did extensive damage to the company’s property. The directors resolved in 1920 to pursue a policy of centralisation of manufacture and to rebuild and re-equip the Mataura Mill on modern lines. Riverhead was closed, and by the end of 1922 Mataura had a Fourdinier machine of good capacity and a complete hydro-electric plant. The output was substantially increased, and in 1923 the combined efforts at Mataura and Woodhaugh reached 4600 tons. ' . In 1937 a further paper-making machine was installed at Mataura. Paper production ceased at Woodhaugh the previous year. The annual production of the company was maintained at 6400 tons until 1947, when the output was advanced to over 8000 tons. The company had in recent years operated its own coalfield and power development had been gradually extended to meet the steadily increasing demands of the mills. With future expansion m view, the company had purchased land adjacent to the mills, and also a building for conversion into a small factory or to provide storage accommodation Several dwellings had been built or acquired to overcome the acute housing problems. . , An incentive bonus to employees, introduced two years ago, had been a factor in the maintenance of good relations, together with high production.