Document ymob59VqkVEVnGdXrkzemakeX

U.1 J V i'h- ..an. Senator Scott, leaeral Hesters` Sooas, 7th Jane, 1957. bear Senator Scott, following on our taloohtana conversation _o-day, I nov set out briefly tfco csaln points concerning oar production ant development position at .-.ittanoon - K&? Production rote of fibre fans increased free apprcrto*.aly V,500-teao in 1955' sal Q,f00-tonc in 1956 to a current rate of l,C*>0-tons per month. Our air is to increase cutrat to about 17,^00-toas in l?5o, 25,000-tocs in 1959 and to 35,OOv-taot p.n. if ana when the market Justifies production of that order. MASKSYSg The demand for our product overseas has been ffifliataiaeu and vg have entered Into an arrangement to supply Johns-Wanvllie Corporation of Kev 2orb with quantities in creasing to 16,000-tons p.a. over the next few years. Our other customers are world vide and vs are optimistic re garding the continuance of the demand for our fibre. K.4< PLAIET? in order to oak* our product competitive with that of the African producers and to cope with the ex panding market, it has bean necessary for us to build another treatment plant at our nev mine site, istime ted cost of the first stags of this project is ^350,000 and we hope to ha^e it in operation late next year, lenders tor the \*ork are now bsing let to PeTth firms. COCTS; &y incurring major capital expenditure on new plane ant by increasing output ant sales, wo a*& matins every effort to re-nice cost of production, '..c art1 very concerned, tKr*evr, about tli- ever lacrensinj f!rsights +# part.rcir.rg&s noth or. our coast ana io overseas ports, it.- recent increase in at.to Shipping Service freights totfc ways will osar, a cost to us of -pprer. p.-. vfcer. vs^rv procucin.: at *. rate of t^w-cons o- fibr a.a. r vl clrcae;* incur disadvantaja < WV-003904 -an.;tor ocott, 0!3S?t ?/L'Z -: a 'Oil-.--. - Li** ii >* O os:* tor. i- orsrsecs ir-ltnts ;u'vr-. 'It,, it.i.lU o prac.1- :. 2t:r'{-titer: j -' . i;. rrai^.t: c.^r. vs from ir .:rrio;o oti.'or... -t.o flu* ... ,. _ . , _ ;t . i*. i.oa U_. o Jw--lOii --- .2*0-- - >--' < --- * -- - ... _ >. mg..-s. overlun- Tr^ijiits :rou ` ^;ro, t-it by any company, tra if., vnsrc-o the eccuuiirslent coot to a: i.t ncr,: In excess* or I*l1f". * In co^m"pHerning our coots k... .:ost oo our scan ctitors, uo blurifore opersts et u disadvantage of 1$. .per ton. of fiSrv an oversi1 freight c.:ar;r-. inn*, t.rLp is'txhorbitant on materiel priced :or. o.b*. i roruir.tle. If competition 'In the bine asbestos business should tacoas1 keener, the additional freight charges which we carry arc sufficient to naite our position untenable even tnournvfr expect our direct production costs to, ultimately, esnpare fivearsfcly with those or the ,.fricar. producers* \!i. ernnot roly on lacrosse trices to offset the continually risir.,, costs as C-nnlisn end Russian fibre would replace our product if the price shcul- ris;: above its true value. Jusslan fibrv is already penetrating our Suropoan narkst vni We kaov thc.t their enquiries fcav-s extender to Japan cut other countries. fTw.HSPOK?! rins recent months the shipping position from Pt. Samson hes been satisfactory. Wo consider, however, that Pt. Samson is suite iaedequats to cope with our projected out put during the next few years and vs hero asked the lbin Roada L-spt. to construct a road to enable us to ship to Pt. Eedland. Ihis will allow us to divide our shipments and will provide an alternative port should the Pt. Samson Jetty be damaged by cyclones, which happens fairly regularly. l&XlTIPy* Me would appreciate any assistance which you can give in eliminating Pay P.oll Tax anc in arranging other tax benefits in the north, which will help in reducing our costs and asking us more competitive vitc the producers of blue asbestos in Africa. the Korth 1 hope you have an interesting trip through lours sinc^Bly, iw