Ann: GENERAL: NPX: ANZ Business Re-organisation

• Release Date: 20/02/14 10:45
• Summary: GENERAL: NPX: ANZ Business Re-organisation
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					NPX
20/02/2014 08:45
GENERAL

REL: 0845 HRS Nuplex Industries Limited

GENERAL: NPX: ANZ Business Re-organisation

NZX/ASX release       20 February 2014

ANZ Business Re-organisation

Nuplex Industries (NZX/ASX: NPX) today announced the restructuring of its
Australian and New Zealand (ANZ) businesses into a flatter, simplified
structure and confirmed that the streamlining of its manufacturing network
commenced in September 2012 is progressing as planned.

A flatter structure for ANZ comprised of two leaner, simplified business
units

A flatter, simplified management structure will be implemented consisting of
two business units that will report directly to the Chief Executive Officer,
Emery Severin. The restructure will have no direct impact on customers;
however it will result in the removal of a layer of senior management and
consolidation of a number of business and functions.

The two business units will be
o Resins: This will bring together the management of the Coating Resins,
Composites, Pulp & Paper and Construction Products businesses into one
business unit
o Specialties: The agency & distribution business, Nuplex Specialties and the
plastic additives business, Nuplex Masterbatch will be managed as one
business unit.

Nuplex CEO, Emery Severin said, ''Regrettably, re-organising the ANZ
businesses and reducing the overhead structure will result in job losses,
mainly in the management ranks. However, these changes are necessary in order
to align the size and structure of the business with the realities of the
region's markets and position the region to deliver sustainable returns into
the future.

"With its leading market positions, committed workforce, rich history and
streamlined manufacturing footprint, there remains a place for Nuplex's
businesses along with a competitive manufacturing network within the region,"
said Mr Severin.

Positioning Nuplex ANZ for the future

Mr Severin continued "These actions are being taken in combination with the
streamlining of the manufacturing network commenced in late 2012 and is in
the long-term interests of Nuplex and all its stakeholders. We will position
the business to generate strong cash flows and deliver its target return on
funds employed of 16% within the two year period between the 2016 and 2018
Financial Years.

"As mentioned in my comments made today as part of the announcement of
Nuplex's interim financial results, the Resins business will have a
sustainable future as a result of the streamlining of the manufacturing
network, simplified management structure and lower cost base.

"The Specialties business' strong market positions and reputation for quality
products and service will enable it to grow organically in the ANZ markets
through the development of new agencies and principal relationships as
imports continue to increase," concluded Mr Severin.

Senior Management changes

As part of the restructure, it is proposed that approximately 30 employees
will leave the organisation.

Nuplex's Regional President of Australia and New Zealand, Sam Bastounas, will
be leaving Nuplex. Zel Medak, who is currently General Manager of Nuplex
Composites, will become Vice President and General Manager of the Resins
business unit. Zel joined Nuplex in 2012 from Akzo Nobel and has over 20
years' experience in the coatings industry. His current position will not be
replaced. Ivan Tottle, who joined Nuplex in 1993 and is currently General
Manager of Nuplex Specialties, will become the Vice President and General
Manager of Specialties through taking on the additional responsibility of
Nuplex Masterbatch. These appointments will take effect immediately.

Mr Severin emphasized: "This decision is in no way a reflection on the
calibre and dedication of the employees who will be leaving Nuplex. I would
like to thank them for their hard work and commitment, particularly over the
past few challenging years.

"In particular, I would like to thank Sam Bastounas for his significant and
valuable contribution to Nuplex over the past 24 years, and we wish him every
success for the future," said Mr Severin.

Annualised cost savings of $5.8 million in the 2015 Financial Year

Implementation and redundancy costs are expected be around $3.4 million and
are expected to be taken in the 2014 Financial Year. Savings of approximately
$1 million are expected in the 2014 Financial Year. This re-organisation is
expected to deliver annualised savings of approximately $5.8 million in the
2015 Financial Year.

Streamlining of ANZ manufacturing network remains on track

The streamlining of Nuplex's ANZ manufacturing network, commenced at the end
of 2012, remains on track to reduce capacity by 30% and realise $6.5 million
in annualised cost  savings in the 2016 Financial Year.

For further information, please contact:  Josie Ashton, Investor Relations
+612 8036 0906 [email protected]
End CA:00247238 For:NPX    Type:GENERAL    Time:2014-02-20 08:45:06