Story image

Nuplex beefs up investment plans across Asia

09 Apr 2015

Nuplex Industries, the specialty chemicals manufacturer, is exploring more investment opportunities across Asia, having shifted its businesses away from the firm's traditional markets in Australia and New Zealand.

The Auckland-based company officially opened a US$35 million plant in China's Changshu, and is already considering expansion plans for the site, where it holds a 50-year lease. The company was caught out by under-investing in Asia, and has since increased efforts in the region, spending $60 million over the past four years.

Chief executive Emery Severin says China, as the world's second-biggest economy, looms large in those plans, as does the rest of South East Asia.

"Here in Asia, our total South East Asia business is bigger than China," he told a visiting ministerial delegation, led by Economic Development Minister Steven Joyce. "We expect China to be the biggest business in maybe 10 years' time, but we see South East Asia as being just as important in terms of growth."

For profits derived from Asia, China accounts for about 40 percent, while South East Asia contributes 60 percent, Severin said.

Nuplex has been assessing its plans for further growth initiatives in emerging markets, and has previously said it would update shareholders following a review at the end of the June quarter.

That's included the sale of two Australasian Masterbatch and Specialities units, which Nuplex says leaves it to focus on the global resins business.

Severin said Russia was a largely untapped market where Nuplex has invested about $10 million to chase growth, and would expect to spend between $30 million and $40 million over the next couple of years.

The company's shares last traded at $3.25 and have declined about 3 percent in the past year. The stock is rated a buy based on the consensus of six analysts polled by Reuters.

Security flaw in Xiaomi electric scooters could have deadly consequences
An attacker could target a rider, and then cause the scooter to suddenly brake or accelerate.
Four ways the technology landscape will change in 2019
Until now, organisations have only spoken about innovative technologies somewhat theoretically. This has left people without a solid understanding of how they will ultimately manifest in our work and personal lives.
IDC: Top 10 trends for NZ’s digital transformation
The CDO title is declining, 40% of us will be working with bots, the Net Promoter Score will be key to success, and more.
Kiwi partner named in HubSpot’s global top five
Hype & Dexter is an Auckland-based agency that specialises in providing organisations with marketing automation solutions.
Moustache Republic expands Aussie presence with new exec
The Kiwi digital commerce partner has appointed a Sydney-based director to oversee the expansion of the company’s Australian footprint.
Epson’s new EcoTank range with two years printing per tank
With 11 new EcoTank printers that give an average user two years of printing and cost just $17.99/colour to refill, Epson is ready to change the game.
Te reo Māori goes global via language app called Drops
If you’re keen to learn a few words of Māori – or as much as 90% of the language, you may want to check out an Android and iOS app called Drops.
Reckon Group announces a steady profit in 2018
Reckon continued its investment in growth throughout the year with a development spend of $14.3 million.