Nuplex is on track to become a "genuine global supplier" of coating resin, shareholders were told at today's annual meeting in Auckland.
Chairman Fred Holland said the $208 million purchas e of Akzo Noble's Coatings Resin during the year meant Nuplex was no longer over-reliant on the Australasian market.
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well as operations in Europe and the Americas, the Coatings Resin acquisition boosted Nuplex's access to markets in Malaysia, Indonesia, Thailand and China.
"The acquisition brought world-class research and development into the group, removing our reliance on being able to license the technology of others," Mr Holland said.
Prices of raw materials for the resin business remained at higher than normal levels, but margins and demand for products were recovering.
As a result, Nuplex expects earnings per share (eps) to recover in the current financial year. In the June year the company's eps fell to 40.8c from 45.8c the previous year. Mr Holland said today he was confident eps would reach 48c this year.
Managing director John Hirst told shareholders the resins business, which represents 77 per cent of Nuplex's total sales, was key to the company's ongoing success.
"After a slow start to the new financial year, our international resins business has gathered momentum and is operating close to expectations," he said.
Mr Hirst said the international resins market continued to undergo significant change through mergers and the spinning off of resin divisions by global paint manufacturers.
"These will represent opportunities for us to build out international position from what is already a significant base."
Shares in Nuplex were up 13c or 3 per cent at $4.15 in morning trade, having ranged between $3.39 and $6.20 during the past 12 months.
- NZPA
