Wednesday 29th October 2003
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Last month it successfully completed the acquisition of Stevens Filterite.
Chairman Keith Smith says there are also significant opportunities to develop the business both in and from emerging markets.
Skellmax has committed to the establishment of a factory in China that will manufacture non-technical rubber products that are currently uneconomic to produce in New Zealand.
The factory will operate under local management as a business unit of our Christchurch manufacturing base.
"We have elected to commence manufacturing in China to access lower cost production and improve our competitiveness in non-technical products," Smith says.
"We will be exporting from China rather than targeting the local market."
Smith says Skellmax is a sound business well balanced between domestic and international trading, that has delivered results including a net surplus after tax of $12.6 million versus the prospectus forecast of $12.4 million.
"Earnings in both of the company's trading divisions attained the levels on which the prospectus forecasts were based as was the case in terms of our geographical spread of business activity.
"A large part of this achievement was delivered through committed marketing and a rigorous attention to the containment of costs.
"While there are more glamorous companies than a rubbergoods manufacturing business, as investors come to appreciate that Skellmax Industries is capable of providing certainty of earnings and cash flow, the market may begin to rate the company more favourably than it has done to date," Smiths says.
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