Nuplex started in Auckland in 1956 as Floor Tiles and Parquet, and is now Australasia’s largest producer of resins. Core resins operations account for about 80 per cent of Nuplex’s business.
The changes are being driven by new technology and trends towards environmentally friendly resins such as the synthetic mixtures used in paints, printing inks, adhesives and fibreglass.
Managing director John Hirst says the company has to prepare for this trend, particularly in Europe.
“We expect the market for conventional solvent-based coating resins will shrink a little and the new market will be in more environmentally acceptable material such as water-based coatings.”
The restructuring costs will be more than offset by the $24.4 million made from the sale of Nuplex’s environmental services group last year.
This will give a significant increase in working capital and help position the company for growth, Nuplex says.
