FREEZING WORKS

Hokitika Guardian, 21 October 1930, Page 5

FREEZING WORKS

AMALGAMATION PROPOSALS

,'By Telegraph—Per Press Association.)

GISBORNE, October

If negotiations now in train reach a satisfactory conclusion, freezing interests operating in Poverty Bay will jointly take the step of offering a valuable lead to industry throughout the Pominii.n.

The .statements that a fusion of freezing interests was in train, has been heard lately, and is now substantiated by a notice to the shareholders of Gisborne Sheep-farmers Coy. of a special general meeting to consider a proposal authorising the directors to enter into arrangement with Nelson’s (N.Z.) Ltd., for a joint operation of Kniti works.

The projected fusion is highly important. as the first of its'kind representing an effort on the part of companies to reduce the overhead costs of the industry. It is understood there is no intention to fuse interests except in the actual operation of freezing works, both companies retaining separate headquarters staffs. Proposals formulated for submission to tire shareholders meeting contemplate the possible formation of a subsidiary company to opera,to odorks presumably on a leasehold tenure for a Axed period. It is well known that neither Coy. has been working profitably hei‘6 in recent years, owing in insufficiently of stock to support two works. Last season men engaged at the two works made small ever age earnings owing to broken time, and though the projected fusion will reduce the payroll there will he iimproved earnings for the men who secure engagements. Negotiations are not- yet finalised hut the action of Gisborne sheepfnrmers directorate is significant of anticipated success.