TIMBER PULPING MILL

Rotorua Morning Post, Volume 2, Issue 459, 17 February 1933, Page 4

TIMBER PULPING MILL

The liews from Whakatane that a further step has been taken towarcl the establishment of a timber pulping mill in the vicinity of Te Teko is encouraging and strengthens the hope that this much discussed project will shortly assume concrete form. Apart altogether from the importance to the district of the establishment of such an important industry, it is an encouraging sign of recovery to find that a company has the courage to contemplate such a large investment in the face of the present conditions. There is no question that timber pulping in its various hranches opens up possibilities for a very large and important secondary industry in this country, and it is of major importance not only to the immediate district, but to the whole of the Dominion, that this project should succeed. It is undoubtedly the most profitable means of turning the vast afforestation areas in this district to commercial account, and that is a matter in which the whole Dominion as well as the commercial organisations concerned, are vitally interested. A very large capital outlay is necessary for the establishment of a pulping plant, but apart altogether from the New Zealand market which can absorb only a proportion of the newsprint output from such a mill, there shoulcl be good opportunities opened up of overseas export. There are also other profitable side lines on which the mill could specialise and these again should offer excellent opportunities for commercial expansion. The paper pulping industry has assumed very large proportions in Canada and the United States and a very large amount of capital is invested in the industry. As an example, it is estimated that the assets and property of one moderately sized mill a'lone are valued at over £5,000,000. The actual value of pulp made in Canada alone in 1930 was over £21,500,000. It will be percieved from these figures that the industry is one of tremendous importance to Canada and it is to be expected that any company setting up local production in

New Zealand will meet very strong and powerful competition. There are, however, big possibilities in developing the Australian market and with the shorter transport distances it should be possible to meet overseas competition on a fighting basis. The first essentials for the establishment of a mill, outside the necessary finance, are cheap power and transport, and realising the importance of the industry, local bodies in the im-' mediate vicinity of the proposed mill, are prepared to assist the company in every reasonable direction. There is already a mill established ' in the Dominion manufacturing wrapping paper, bags, etc., but this will not enter into competition with the products from the proposed Te Teko mill. The establishment of the mill will bring in its train new settlements, roads, power and transport supply, and development of communications. It will be an event of major importance so far as the district is concerned and one which must be the means of giving a marked acceleration to business in many directions. As an instance, a port'must be developed, and in this direction improvements would probably be carried out which would mean improved access from the sea, to the whole district. The project is a long way from an accomplished f'act, of course, but it is one of outstanding importance and any progress which is made towards the eventual establishment of the mill is a matter for satisfaction.