PAPER MILLS PROJECT

Wanganui Chronicle, Volume 80, Issue 247, 18 October 1937, Page 11

PAPER MILLS PROJECT

WHAKATANE ENTERPRISE THE PLANT ALMOST READY A ten-year development programme involving the creation of some 60,000 acres of pulpwood forest and the erection of a £500,000 pulp and paper mill plant is reviewed in the report and balance-sheet of Whakatane Paper Mills, Limited, and its subsidiaries, for the year ended June 30.

The company expects to commence operations during the current financial year. The works will have facilities lor making 12,000 tons of groundwood pulp and 20,000 tons of paper board, the annual value of production from this initial unit being about £320,000.

Higher wages and other charges would, of course, increase manufacturing charges over the figure calculated 12 months ago, states the report, but a much better price and demand for the finished product should be enjoyed. The company was assured of a substantial tonnage in the domestic market and had excellent facilities for building up a satisfactory export trade. The company's major programme, newsprint, had been brought nearer fulfilment and the installation of additional units to make newsprint could not long be delayed. Provision had also been made for a chemical pulp mill. As no trading had yet been carried out by the company all expenditure had bSen capitalised in accordance with previous practice, explains the report and income from invested funds had been applied to the reduction of the total expenditure. Paid up capital had increased by £118,192 to £1,892,648. Cash deposits at call or at hand amounted to £186,893 and with unpaid capital amounting to £180,380 there was £367,273, for which there was full use if the company was to go into production without borrowing. The aggregate balance-sheet shows assets totalling £1,933,695, including forest and plantations £1,054,000, establishment account, £423,276 and cash. Government securities and first mortgages, £215,349. A note appended to the balance-sheet states that preference dividend in arrear at June 30 did not exceed £lO,OOO. Paid up preference capital amounts to £80,694.

Subsidiary companies are: Timber lands Woodpulp Extended, Limited, Timberlands Woodpulp Development, Limited, Timberlands Woodpulp Estates, Limited, and Commonwealth Underwriters, Limited.