Diversified industrial group Ludowici Ltd. said the sale of its New Zealand plastics business is not a precursor to disposal of similar assets in Sydney.
The Sydney-based company announced June 19 it has sold the New Zealand business for US$7.43 million to Mulford Plastics (NZ) Ltd., a subsidiary of Sydney-based Mulford Plastics Pty. Ltd. The business operates from plants in Auckland and Christchurch, New Zealand.
Arnold Mouw, general manager of Mulford Plastics, was unavailable for comment.
The company decided 12 months ago to dispose of the business, said Glenn Turner, Ludowici managing director. The New Zealand company, Ludowici Plastics Ltd., imports sheet, tubes, rods and machined plastic products from a variety of suppliers in the United States, Europe and Asia.
The company also undertakes custom molding of polyurethane products and supplies customized injection molded products using nylon 6, filled nylon, polypropylene, flexible PVC, polystyrene, polyethylene, thermoplastic rubbers, thermoplastic PU, acrylics and polyester elastomers.
``Our business is really taking finished sheet, rod and tube plastics and customizing each for the customer,'' he said.
The Ludowici group began in Sydney in 1858 as a tanner and manufacturer of leather drive belts, before moving into rubber, synthetic rubber and plastic products in the 1920s.
Today, through subsidiary companies, the group supplies Australian customers with a range of industrial and commercial plastic products manufactured at its Sydney plant, including wheels, rollers, hinges, industrial seals and bearings.
The group also has specialized in businesses supplying equipment for minerals processing and industrial grinding, molded rubber goods for automotive or industrial applications, molded-pulp packaging and water gates for rural, industrial and civil use.
Turner said the group's main focus gradually moved toward the mining sector, a trend that prompted the New Zealand sale.
``We decided a year ago to divest the NZ business because it was no longer relevant to the group's core business of servicing the minerals-processing industries,'' Turner said. ``But there is no intention of selling our Australian plastics assets because they are more oriented towards the mining industry.''
Ludowici was established in New Zealand in 1975. In 1999 it took over Ceelon Plastics Ltd.