Nuplex swoops again on Australian prize

By Dita De Boni

Auckland resin manufacturer Nuplex Industries is poised to make its second Australian acquisition in six weeks.

It will buy the polymer business of Sydney-based National Starch, a member of Britain's biggest chemical company, ICI Group.

Almost two months ago, Nuplex became the largest Australasian producer of polyester resins and gel coats when it brought Australian-based Dulux Resins.

The cost of the deal is not being disclosed as it is less than 10 per cent of shareholders' funds, about $NZ92 million.

The sale will give Nuplex 25 per cent of the huge domestic Australian polymer dispersion market, in addition to 45 per cent in New Zealand and a plant in Vietnam supplying a growing portion of the South-east Asian market, says chief executive Fred Holland.

It will expand the company's market coverage of polymer resins - mainly used in acrylic latex, printing ink and water-based paint - and is a "rationalisation of a fragmented market in order to become globally competitive."

The agreement is subject to Australian Consumer and Competition Commission approval, but Mr Holland expects it to be ratified late next month.

Nuplex is hoping to complete an Australian Stock Exchange listing by November. Its share price rose 1.8 per cent when the deal was announced, finishing the day unchanged at 285c.