PORTLAND CEMENT

Sun (Auckland), Volume II, Issue 377, 11 June 1928, Page 13

PORTLAND CEMENT

ANNUAL MEETING CHAIRMAN’S ADDRESS “The net profit earned amounts to £88.245 7s sd, which is slightly better than that of the previous year,” said Sir George Elliott, chairman of directors of Wilsons (N.Z.) Portland Cement, Ltd., at the annual meeting of shareholders, held this afternoon. “The directors recommend that the | same dividend be paid as heretofore, I viz., 2s a share for the year. Is of i which was paid as an interim dividend six months or so ago.” The creditors’ item, he said, showed a substantial decrease of £33,681 4s Sd. That account ltust year included a sum for payment of machinery on order, which had been installed and was now in operation. The increase of £6,611 in marine insurance was accounted for oy the transfer of a sum to marine insurance account, plus ordinary premiums credited to the account during the year. The company itself now carried tho whole insurable risk on its vessels.

In continuation of the policy adopted at the annual meeting of shareholders in 1926. a further appropropriation of £25,000 to reserves was suggested, which would bring the total reserve fund up to £75,000. Freehold land, plant, buildings, etc., showed a decrease as compared with ast year due to a full and proper allowance having been made for the develsifs 10 ” ° f Plant, machinery and vessels. Obsolete plant has also meen entirely written off.

=ini tOC^ s °f cement showed a con- *? e ~l ncreaso compared with nvino 'to i h n prcvi , OUK balance sheet, i"ing to a diminution of sales for the last few months of the year. Investments had been increased bv £45 652 is 6d, and this increase, together with l?.p e , XP e lldltUr ? involved in the instalofriorn Tf' V a P ' ant for the manufacture for F % P d hardening cement, accounted tor the decrease in cash and bank minm Thß Whole ° f these invest"ere composed of New Zealand Government tax-free stocks, £267,271 £49 993 and Wilsons Collieries, Ltd., increase in sales n " T K kins the . year as a whole there has been an increase in the sales of the company’s commodities, accounted for by the hydro-electric schemes and other constructive works being carriea on,” he continued. “The consumption of cement depends to a large extent on the activities of the Government and of local bodies, but many of the large works that were in lull swung last year are now either completed or nearing completion.”

Our trade showed a falling tendency toward the end of the company s financial year, and present indications point to a continuation of slacker times. Shareholders may rest assured, however, that every effort will be made by the staff to maintain sales at the highest possible level, and it is hoped that the diminution of business will not be of long duration.” CEMENT DEVELOPMENTS “Important developments have taken plgce in the cement industry during the last two or three years; probably the most important since Portland cement was first made in England over a century ago. Not only has the British standard specification in connection with quality been very considerably raised, but, what is to all intents and purposes a new cement —a rapid hardening cement —has sprung into being. Investigations had proved that our raw materials were entirely suitable Cor the manufacture of rapid hardening Portland cement. Machinery had been erected, and the company was now making and selling it.

Ajnong the new work completed duryear was the change over of the Nos. 3 and 4 kilns to the wet system. Half the plant at Portland therefore operated under what is known as the “dry” system, and half was being operated under the “wet” system. One of the steam shovels in the quarry which had been damaged by an accident had been replaced by an up-to-date electric shovel of three-yard capacity. The removal of the cement plant from Warkworth to Portland had been completed, and there are now four unit 3at Portland. The erection of the Warkworth unit would result in more economy in manufacture, and better supervision in the maintenance of quality. The manufacture of hydraulic lime was still being carried on at Warkworth, but it was expected that within the next three months this work also would have been transferred to Portland.

The company’s hydro-eelctric station at Wairua had been maintained in efficient order. The waste heat steam plant at Portland had been duplicated. The company’s housing scheme had been completed. Two vessels, s.s. Herekino and o.v. Ronaki, were being maintained in first-class sea-going condition. VILLAGE OF PORTLAND

Improvements in the village at Portland were being steadily effected. The land around the village was now being farmed.

The relationship between the company and its officials and workmen continued to be excellent. The wellfare work carried on at Portland still showed good results. There had been much over-expansion in the cement making business in nearly every country, and it looked as if the same position might arise in New Zealand. The existing works, without additions, were more than able to cope with all the business likely to be offering for some years to come. The company is in a strong financial position and able to stand a time of over-competition or dull trade. “It is maintained by many makers that the industry has nearly reached a point where cost reduction is practically impossible unless some revolutionary changes take place in manufacture. It is possible that such a change might take place, as scientists the world over are seeking new methods. In view of the possibility of over-production, of changes in the manufacture, of dull times, it is essential that our liquid financial resources should be of a substantial nature,” said Sir George.