Industrial and residential coatings manufacturer Nuplex is targeting sales from its Asian operations of $500 million a year looking forward to the March 31, 2018 year.
In its strategic update posted as an NZX disclosure, a section entitled "looking ahead three to five years" lays out the extent of recent Nuplex investments in Australia, Thailand, China, Vietnam and shortly in Russia, to create a "repeatable framework" for entry in other fast-growing emerging economies, including Turkey, India, and Brazil.
While the company has no revenue numbers, it's positioning for parts of Asia's coatings market, especially in the strong economy of Java.
It's also investing in production and laboratory facilities in China.
Nuplex reported a 31.4 per cent drop in net profit after tax for the year to June 30 of $42.9 million, reflecting flat New Zealand trading conditions and low demand in key Australian and European markets.
However, chief executive Emery Severin outlined plans for an increase in Asian production capacity by the end of next year, through a third Chinese plant, a new plant at its Indonesian site, and extra capacity at a Thai powder resin joint venture.
Nuplex is targeting a 4 to 7 per cent compound annual growth rate through to 2018, with volumes shifting decisively to emerging markets. Nuplex shares closed up 11c yesterday at $3.46.