Salt Transfer Completed

Press, Volume CV, Issue 31000, 4 March 1966, Page 3

Salt Transfer Completed

(N.Z. Press Association) WELLINGTON, March 3. Arrangements had been completed for the admission of Cerebos (New Zealand), Ltd., as a onethird shareholder in Dominion Salt, Ltd., the Minister of Finance (Mr Lake) said today. Shares in the company had been held by Skellerup Industries, Ltd., of Christchurch and the Crown. The Crown’s 150,000 preference shares of £1 each have been converted into ordinary shares and the capital of the company increased from £300,000 to £450,000.

Each party will therefore hold 150,000 ordinary shares and appoint three directors. “BENEFIT TO N.Z.’’ Mr Lake said he was satisfied that introduction of Cerebos as a shareholder into the company would be of “distinct advantage” to it and of benefit to New Zealand as a whole. Cerebos had links with overseas principals widely experienced in the production of solar salt and also in the marketing of various grades of salt, including household salt, the Minister said. The principals had undertaken to provide technical assistance and such other information as might reasonably be required. The initial steps to establish the present works at Lake Grassmere in Marlbor-

ough were taken by the late Mr G. Skellerup in 1943. The Crown has been associated with Dominion Salt, Ltd., as a preference shareholder since the company was reorganised in 1949. HAS NOT PROSPERED

“The production of salt by the solar process under New Zealand conditions has proved a highly technical operation and the company’s history has not proved at all prosperous.” said Mr Lake. Efforts to make improvements had continued, and expenditure in recent years had been substantial. As a result, material progress had been made toward placing the production on a sounder footing, the Minister said.

Output was a record 30,000 tons of coarse salt for the 1965 season.

It was hoped that much improved and regular results would be achieved. “The objective is to develop the capacity and facilities of the company so that New Zealand’s entire requirements can be met with consequent savings of our overseas exchange,” said Mr Lake. “This means it will be necessary to diversify the output if the local market for the various grades of refined industrial salt is to be satisfied.” NEW REFINERY The Minister said planning would begin immediately for the installation of a refinery to enable the production of household salt in about two years’ time. No great changes in company management were expected at present, the Minister said.