Nuplex considers move to Australia

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New Zealand-based chemicals supplier Nuplex Industries is considering shifting to Australia.

"Following detailed consideration, your directors are coming to the view that a change of the company's domicile to Australia, with listings remaining on both the New Zealand and Australian exchanges, would be in the best interests of all shareholders," Nuplex chairman Rob Aitken said in the company's 2010 annual report.

"This would likely result in the payment of partially imputed dividends for New Zealand shareholders, greater liquidity in the larger Australian market and, we believe, a possible re-rating of Nuplex shares over time.

"Greater access to the Australian capital market would also facilitate the group's growth plans."

Mr Aitken said Nuplex's focus now was on investing in growth opportunities, both organic and through acquisition.

These would include increasing capacity in certain markets, particularly China and Vietnam in the short term, and penetrating new and existing markets with products based on new technologies.

"While demand is significantly stronger than a year ago, Nuplex's performance in 2010/11 will depend upon economic activity in our markets, and I am confident that our group is well placed to prosper as economic conditions improve," Mr Aitken said.

- AAP