We have been informed by a gentleman with a large experience in the paper trade, who, however, does not wish his name mentioned, that steps are being taken in the direction of establishing paper mills in the neighbourhood of Adelaide.
The project was taken up some years ago, but was allowed to remain in abeyance until now, when the outlook is considered more satisfactory. Estimates have been obtained from the leading engineers engaged in the paper trade in the old country as to the cost of the proposed mills.
The machinery is estimated to cost £10,500, the buildings from £2,500 to £7,000, according to whether of iron or stone, while the cost of the paper machine is put down at £3,278. It is intended if possible to get the Government to waive the duty on the paper machine itself, as that could not be made in the colony, but as much of the required machinery as possible will be manufactured locally.
The position of Adelaide is regarded as being most favourable as regards the raw materials necessary, most of which would be readily obtainable here. A large firm in England, who have taken a great interest in getting information for the promoters, have offered to take a £1,000 interest in the mills.
Fifty hands will be employed, and the mill is intended to produce 30 tons of paper per week when in full work. The consumption of paper here, of the kinds that will be turned out from these mills, according to the Customs returns, is 700 tons per annum, and without calculating such outlets as Broken Hill and Western Australia it is considered that the trade in South Australia alone is sufficient to make the mill pay handsomely.
There are two or three paper mills in Victoria, from which a large quantity of wrapping paper is sent to Adelaide, and that demand could be well met by the proposed mill here.
One of the greatest difficulties met with has been in connection with the selection of a suitable site, but that difficulty has been overcome, and a site, which is believed will answer to all requirements, has been determined upon.