STRAWBOARD INDUSTRY.

Timaru Herald, Volume CXXV, Issue 18652, 22 August 1930, Page 2

STRAWBOARD INDUSTRY.

TIMARU’S NEW VENTURE. The new strawboard industry which it is proposed to establish in Timaru, will be one of the greatest importance, not only to South Canterbury, but also to the whole Dominion. At present, a total of £220,000 annually is sent out of New Zealand for strawboard, and this huge sum it is hoped to retain in the country by the development of this business here.

Operations involving the expenditure of the money that this undertaking means would represent a considerable wages outlay, and the employment of a large amount of labour. In addition, farmers who grow large quantities of wheat annually would benefit, while to-day their straw stacks are mostly waste, they will in future represent a considerable measure of value. Never before in the history of New Zealand has there been such a necessity for the development of industry as at present. In times gone by, money has been sent out of the country—often to foreign countries—in importing articles which could be manufactured here.

Since the war, quite a number of payable industries have sprung up. These have been the means of circulating money among the workers, but for which many would be swelling the ranks of those not able to secure employment. It is refreshing to find men sufficiently optimistic in the future of the Dominion industrially, to be ready to invest their money in establishing an industry of such importance to South Canterbury as the strawboard venture is expected to become. Interviewed yesterday, Mr J. Todd, chairman of directors of this new company, said that experiments had proved that the manufacture of straw could be carried out in such a manner that it would become a most profitable business. Samples of the board produced, when compared with the imported article, showed that. It had only to be remembered that almost every form of industry here absorbed large stocks of strawboard annually, to realise that it would be good business to keep this money in the country. New Zealand, he said, exported large quantities of apples each year, and it had been found that in the process of transit these apples became bruised, and this depreciated the value of the fruit. Experiments had shown that by using corrugated strawboard this bruising could be prevented, and the fruit landed at its destination in the very best of condition, and the Fruitgrowers’ Federation had now come to the conclusion that this system of packing is essential, irrespective of cost, if this export industry is to reap the reward expected of it. Already the Federation was making inquiries as to the possibility of this new venture. Something like a million and a half cases of apples went from New Zealand last year, and if this was calculated at one penny per case for the corrugated strawboard to be used in the new process of packing, it would represent a total of £625 a year in this industry alone. “The fact is that they have got to have it,” said Mr Todd, “and seeing that we will be able to manufacture it, and consequently will be able to supply it, there will be no necessity for the fruitgrowers to go outside for their supplies. Then again, box manufacturing concerns in New Zealand have soon realised the benefit they will derive from having an industry of this description in their midst. From as far north as Auckland we have had inquiries from a box company asking for full particulars of our scheme, and we have had an offer to take up shares in the concern from various people vitally interested in it as a manufacturing venture. Printers, too, are interested in it, because they use considerable supplies of strawboard. It is realised that to have a business of this description in New Zealand will mean a big saving in the cost of the board to them, compared with the price they pay for the imported article. We can make any kind of thickness of the board, and the quality compares more than favourably with that brought into this country from other countries. This industry certainly holds prospects of the brightest, and it is going to be a great thing for South Canterbury. We have an option over the building formerly used by the Borough Council as a power-house. It is on the railway line, and we will not be put to any expense in building a line into our yard. It is already there. The ground space is ample for requirements, and we will be able to increase our buildings whenever necessary.” One interesting feature mentioned by Mr Todd was the fact that people who use a great deal of strawboard in connection with their business, have now to import and carry sufficient stocks to last them for six months, whereas with a local company this would not be necessary; manufacturers and others would be able to get supplies to suit their convenience. This would result in a considerable saving in various ways, chief among these being a big capital outlay, and loss of interest. The future seemed bright for the strawboard industry, recent reports indicating that the market for this commodity was very firm. The Dutch mills were anticipating a shortage of supply, consequent upon the increased world demand, and there was a suggestion that the British Isles will be rationed. It was stated that this policy would apply as far ahead as March, 1931. The Scandinavian board market was in a somewhat disturbed condition, but there was no indication that this or any other cause would weaken prices. Therefore, it would appear that Strawboard New Zealand, Ltd’ had come into the field at a time when conditions are most favourable and it was predicted by those best in a position to know that there is a highly profitable period ahead of the Company.