Fibremakers’ Sympathy

Press, Volume CVI, Issue 31109, 12 July 1966, Page 18

Fibremakers’ Sympathy

(N.Z. Press Association) WELLINGTON, July 11. Fibremakers (N.Z.), Ltd., the Imperial Chemical Industries subsidiary which has established a nylon spinning plant near Auckland, has expressed the hope that Enzlon Chemical Fibres, Ltd., will overcome its difficulties. In a statement issued today Fibremakers said: “During the early stages of negotiation with the New Zealand Government in mid-1963, the Government made it clear that it would only permit the setting up of a nylon yarn and fibre-producing industry under a competitive situation. The reasons for such a policy were obvious, and naturally it had the full support of the ‘user industries’ i.e. the textile trade.

“Once negotiations had been finalised. Fibremakers (New Zealand), Ltd., got under way with production, supported by its already existing commercial organisation. Fibremakers believes it has succeeded in its commitments to the textile industry, and has not deviated from its announced intention to supply the trade an increasing range of nylon yam fibres of a quality at least equal to those previously imported. This has been, and remains, its commercial object ve. “Fibremakers genuinely regrets that its competitor has been experiencing such difficulty in ‘getting off the ground.’ However, its hands are tied as far as any question of financial or commercial assistance is concerned, as this would transgress the Government’s policy of competition associated with the establishment of the industry. “Failure in any industrial undertaking, particularly in

one of such a capitalintensive nature, is a most unfortunate occurrence in a country like New Zealand, which is striving to develop its industry in order to maintain economic progress. It is to be hoped that some means can be found of overcoming the present difficult situation with minimum losses to the community.”