Nuplex eyes five year expansion in Asia

Industrial and residential coatings manufacturer Nuplex is targeting sales of US$500M/yr from its Asian operations in five years’ time.
In a recent strategic update presentation posted as an NZX (New Zealand stock exchange) disclosure, the company laidout the extent of recent strategic investments in Australia, Thailand, China, Vietnam and shortly in Russia, to create what it calls a ‘repeatable framework’ for entry in other fast-growing emerging economies, including Turkey, India and Brazil.
While the company puts no revenue numbers against its projections, it shows it is positioning for different parts of the coatings market in different Asian markets, focusing on the powerhouse Indonesian island economy of Java.
It is also investing in both production and laboratory facilities in China.
Nuplex last month reported a 31.4% drop in net profit after tax for the year to June 30 of US$42.9M.
However, Chief Executive Emery Severin outlined plans for an increase in Asian regional production capacity by the end of next year, through the commissioning of a third Chinese plant, a new plant at its Indonesian manufacturing site and additional capacity to a powder resin joint venture in Thailand.
Nuplex also continues to look for an acquisition to enter the Russian market and the presentation suggested Turkey is seen as the next significantlocation for Nuplex.