WOODPULP MILL

Rotorua Morning Post, Volume 2, Issue 538, 23 May 1933, Page 5

WOODPULP MILL

(Pi-ess Assn.—

in BAY of plenty i — ' ' almost immediate start r forecasted by big share merger CAPITAL OF £2,400,000

■By Telegraph — Copyrigh t) .

Christchurch, Monday. Proposals for merging the present share capital of the Timberlan'ds Woodpulp Oompany with the "bond ' holdings into a .total share capital of miore than £2,400,000 for the purpose. of almost immediately establishing pulp and paper mills in the Bay 1 of Plenty, were endorsed at a meeting of the Canterbury bond holders delegates this evening The chairman, Mr. A. B. L. Smith, said That when production was started the company would control the largest industfy in the southern 'hemisphere. Mr. H. A. Horroclvs, the company's New Zealand attorney, said that each bond would be taken into capital at £55 and the share capital would be 'written up accordingly to £2,444,444. The present supplies of timber would enable the company to have 'an o«tput of 26,000 to 36,000 tons yearly. The cost of production was estimated at £11 a tori, and the nett profit based on New Zealand's wholesale pr'ice for paper, would average about £12 per ton. The expansion -capacity for raw material was up to ahout 150,000 tons. yearly. The meeting unanimously decided to approve of the bond contract being varied and of carrying out the merger proposal.