MATAURA’S RECORD

Otago Daily Times, Issue 27091, 27 May 1949, Page 7

MATAURA’S RECORD

PRODUCTION OF PAPER SUFFICIENT FOR DOMINION Since the incorporation of the company in 1904, when a merger of three existing paper concerns was effected, considerable expansion of its operations had enabled the New Zealand Paper Mills Company to play an important part in the economy of the country. The produ<ftion of paper at the Mataura mills was sufficient to cover the wrapping paper needs of the whole Dominion. These statements were made at the annual meeting of the New Zealand Paper Mills, Ltd., yesterday, -by the chairman, Mr T, Somerville. World markets had proved difficult throughout the year, particularly in the supply of wood pulp, where prices had continued at a high level, Mr Somerville continued. Purchasing conditions were still erratic, but the indications were in favour of a more 'Stabilised market for this raw material. The maintenance of plant in a most satisfactory condition had been achieved in spite of delays in obtaining replacement parts from overseas. Provision had been made in the accounts for furtherexpenditure in this connection. Coastal distribution generally had been much improved, although there had been periods during the year of temporary hold-ups. Delays at northern ports affecting overseas vessels caused some anxiety when urgently-needed mill ' accessories were awaited. Coal consumption at the mills for power and processing had reached a total of about 30,000 tons a year. To ensure that full supplies could be maintained to keep production going, the .company had acquired the lease of an additional area at Mataura for open-east mining. ■ The new land was situated near the mill. The net profit was £16,550, against £16,883 last year, Mr Somerville said, and it should be considered satisfactory, particularly in view of the extra expenditure incurred, not only for plant maintenance, but because of the advancement of the costs of processing and distribution. The amount carried forward in the profit and loss appropriation account after provision for dividends had been made, was £34,862. , The meeting adopted the annual report and balance sheet and a final dividend of 4 per cent, was declared, making a distribution of 7 per cent, for the year. The retiring director,, Mr T. Somerville, was re-elected.