Nuplex said today it had completed the purchase of a privately-owned Chinese resin manufacturer Foshan Veeya Chemical Company.
The purchase was made through Nuplex Resins (Foshan) Co Ltd, a newly formed subsidiary of Nuplex Industries (Aust) Pty Ltd.
The plant, which is in Guangdong province, in the southern region of China, provides
a range of solvent based coating resins to paint manufacturers.
Nuplex said in a statement it initially intended to invest around US$5 million ($7.9 million) in the plant.
Expenditure would include improving health and environmental standards, as well as process improvements and capacity expansions over the next three years.
Additional running expenses of around $500,000 were expected in the first year of business.
The company said conservative estimates were that the business should be profitable in the third year of operation.
Nuplex shares were unchanged at $5.25 by midday today, having traded between $3.55 and $5.31 over the past 12 months.
- NZPA
