Auckland Cement Industry

Progress, Volume XIII, Issue 11, 1 July 1918, Page 258

Auckland Cement Industry

Amalgamation Completed The amalgamation reported some time ago between the three Auckland cement companies is now completed, and a new company has been formed to be known as "Wilsons (N.Z.) Portland Cement Co. Ltd. The capital of the new concern is £600,000, in 600,000 shares of £1 each, which will be allotted to shareholders in the old companies as follows: — Dominion Portland Cement Company, Ltd., 285,000 Wilsons Portland Cement Company, 220,000; New Zealand Portland Cement Company, 95,000.

Mr. George Elliot, who was chairman of directors of the Wilsons Portland Cement Company, Ltd., has been appointed chairman of directors of the new companv. Other members of the directorate are: Messrs/J. W. Ellis, R. E. Williams, and John Wilson, late directors of the Wilsons Company; Mr. Charles Rhodes, late chairman of directors, and Messrs. A. B. Roberton and T. Simson, late directors of the New Zealand Company; Mr. A. K. Williams, late chairman of directors, and Messrs. E. Gerrard and George Winstone, sen., late directors of the Dominion Company.

Interviewed recently, Mr. Elliot stated that in the meantime the new company is running the Dominion Company's plant at Portland, Whangarei, and the plant at Warkworth. The existence of a contract entered into by the Dominion Company to supply Whangarei with electric light, apart from other reasons, practically .forced the company to work the plant at Portland. It was possible that the plant at Warkworth might be closed down so far as the manufacture of cement was concerned, although it might still be used to manufacture hydraulic lime. Referring to the circumstances which brought about the amalgamation, Mr. Elliot said it had been felt for some considerable time that the cost of running three separate plants by different companies to manufacture a quantity of cement which could be turned out by one mill, was not to the advantage of the industry as a whole. It was a fact that during the past year, owing to competition and war conditions, a considerable amount of money had been lost by certain of the companies. During the last 12 months especially, a large quantity of cement had been sold at a price much below that which it had cost to manufacture. The amalgamation of the companies had resulted in fixing the prices at the

pre-war figure, plus the actual increase in the cost of bags, coal, and freight, which amounted to £1 a ton. The directors of the company were well known business men, who would have nothing to do with any attempt to exploit the public, and the price fixed was eminently fair, in view of the increased cost of production as the result of war conditions.