Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Methven shares lift 5% on China deal for shower, tapware

Methven shares lift 5% on China deal for shower, tapware

By Rebecca Howard

Aug. 6 (BusinessDesk) - Tapware designer Methven's shares lifted 5 percent after news it has inked a deal with China's Jiangsu RuiZhiShang Building Materials Company to use its shower technology in a series of key projects over the next decade.

By adding Methven showerware and tapware into RuiZhiShang's project deals, Methven is targeting annual sales of between $8.5 and $10.5 milion by 2020/21, the Auckland-based company said in a statement to the stock exchange.

The shares advanced 5 cents to $1.05 and have shed 9 percent so far this year.

Methven, whose history stretches back to an iron and brass foundry started by George Methven in 1886, is pursuing international growth in countries like China as it seeks to benefit from its investment in proprietary shower and tap technology.

The Kiwi firm increased Chinese sales to $507,000 in the six months to Dec. 31, 2017, from $81,000 a year earlier, delivering earnings of $3,000 compared to a loss of $89,000 a year earlier and said it was in final negotiations with a number of new distributors to expand its presence in Asia's biggest economy.

Today, Methven chief executive David Banfield said the company has delivered over 1 million Chinese yuan, or $217,000, in sales per month for the last four months and this current deal together with a national retail distributed it signed in March "further secures consumers’ confidence in our brand, and enables us to deliver long-term profitable growth in China.”

"The opportunity to bring our award-winning showerware and tapware into hundreds of premium hotels and high-end apartments allows us to tell our compelling brand and technology story to discerning Chinese consumers," Banfield said.

RuiZhiShang was set up in 2001 in China and specialises in supplying bathroom fittings. According to Methven, it signed its first distribution agreement with the company in November 2017, and they quickly brought Methven products into two large projects right after that.

"This success, utilising RuiZhiShang project expertise and passionate commitment, enabled elevation of their regular distribution to a strategic partnership across China," said Banfield.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO:

Wainui: Major Infrastructure Partnership For North Auckland

Minister of Housing and Urban Development Phil Twyford and Auckland Mayor Phil Goff today announced a partnership that will fund $91 million of roading and wastewater infrastructure to support the building of 9000 homes... More>>

ALSO: