Nylex Plastics

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Nylex Limited
Type Public limited company
Industry Conglomerate Plastics manufacturer
Founded1927
FounderJohn Derham
Headquarters
Sydney
,
Australia
Key people
 Peter Derham, (Chairman)
Alan Jackson, (CEO and Chairman)
Products
  • Plastics
  • appliances
  • gardening tools
Revenue A$6.7 billion (1994) [1] [2]
Total assets A$11.8 billion (1995) [3] [4]
Number of employees
~12,000 (1987) [1]
Parent BTR plc
AMES Australasia

Nylex Plastics, founded in 1927, is an Australian manufacturer of a range of plastic goods. It was originally called the Australian Moulding Corporation but changed its name in 1948. The founder was John Derham. [5] [6] During the period between 1990 and 2009, the company was listed on the Australian Securities Exchange (ASX) and was considered to be the largest manufacturing company in Australia and in the top 25 largest companies in the country. [7] It continues to operate in the form of its gardening products branch, which produces and sells plastic gardening products throughout Australia using the Nylex branding. A company that was previously a subsidiary, Nylex (Malaysia) Berhard, also still operates.

Contents

History

Derham era

The Nylex brand has its origins with the Australian Moulding Corporation in 1927. This was a plastics manufacturing firm, founded by John Derham in Mentone, Melbourne in 1927. [8] A rival company, Moulded Products, started in 1931, and Derham sold his company to it, while himself getting a share of Moulded Products. He then later gained control of all of Moulded Products with some colleagues, thus ending up with both companies. [9]

The company expanded to make a range of products, and in World War Two produced plastic radio receivers and Army crash helmets. The demand for products during WW2 saw a lot of innovation as the company expanded into producing different types of plastics, including PVC and polymers. [10] Specific innovations for the military at the time included PVC copolymer solution for moisture-proofing rifles, PVC wire coating, moisture proof striking surfaces for matches. [11]

The company started producing garden products in the 1950s. [12] Australian Moulding Corporation became Nylex. Derham died in 1957, and the company was eventually managed by his son, Peter Derham in 1967. [13] Peter Derham worked with the company for most of his life [14] and other family members managing various parts of the business. Nylex was eventually purchased by Australian Consolidated Industries (ACI).

BTR era

Nylex was purchased by British company BTR Hopkins in 1984 from ACI. In 1988, however, Jackson took over the Australian Consolidated Industries Limited (ACI) itself for a takeover of roughly $1.6 billion, following the share market crash. [15] BTR, then a large global concern headed by Alan Jackson, re-branded the company as BTR Nylex. Under BTR, the company again expanded, with BTR Nylex being the Asian headquarters and central focus point for multiple BTR acquisitions within Asia, including in Malaysia. During this period, BTR Nylex purchased a number of important Asian business operating in related fields, including purchases of plastics companies e.g. China General Plastics in Taiwan [16] and Japan, and a 51% stake in Nylex Malaysia. [17] Jackson improved BTR Nylex's operations in Asia, greatly expanding the business into expanding areas, including recycling PET bottle and glass operations, and the purchase of Formica in the United States. [18] His results in the Asian sector saw him appointed to London to manage the global BTR business, applying his same strategies of success in 1991. While CEO of BTR and Nylex in 1995, Jackson completed the full takeover of Nylex. The remaining 37% of the company that BTR did not own was to be purchased. Jackson bought it for $4.48 billion. In that same year, Nylex was estimated to be worth $11.8 billion. [3] [16]

Austrim era

Jackson later moved to another company, Austrim, after leaving BTR as its CEO. Austrim, having expanded under Jackson's strategic direction, acquired Nylex in October 1998 for A$63 million, [19] when BTR completely collapsed. The same man who had previously purchased the company representing BTR, was now representing Austrim in the purchase. However, the purchase was not as costly as before because BTR had sold off part of the company following Jackson's retirement from BTR in 1996. The company became at that point Austrim Nylex, which was then simplified to Nylex once again, with Jackson commenting that the Nylex brand in Australia was better known compared to Austrim, and this could help the business further grow. [20] [21] Austrim Nylex eventually owned 30 major brands in Australia, including control of many textile companies, but profit margins had become thin and large amounts of borrowing, to expand the company in a short period of time, led the company to begin be unable to pay back its loans. Jackson stayed with the company, eventually leaving in 2001. Following this, the company began decreasing in profit margins and got furthered indebted as a result. The subsequent chief executives could not turn the tides of Nylex's trajectory. [22] The company remained roughly in that same form until the Global Financial Crisis (GFC) in 2007 and 2008. [23]

Products

Nylex's brightly colored Bessemer line of informal tablewares was common in Australian homes in the 1960s. [24] Nylex started making plastic Esky products (originally produced by Malleys) in 1984. [25] By the time of collapse the company was producing a range of products including garden hose, Esky Coolers, floor tiles, car trim and parts, fuel tanks and water tanks. [26]

Esky coolers were particular well known in Australia, and were an iconic Australian brand, the name used in Australia as a general term for a hamper cooler.

Nylex Clock

Nylex moved to Cremorne Street, Richmond in the 1950s, and John Derham's office overlooked the Silos. Derham realised it would be a prominent spot for promotion of his company, which at that time was expanding and the publicity would be beneficial. He decided to move ahead with putting a Neon sign on the silos, ultimately concluded by his son Peter Derham. At the time the staff referred to it as "Derham's folly" and it was seen as a waste of money, but ultimately it became a famous landmark promoting the Nylex brand. [14] The Nylex Clock, erected in 1961, remains a prominent feature of the Melbourne skyline, visible from various parts of Melbourne, including the Melbourne Cricket Ground.

Company collapse

The company went into liquidation in 2009, [27] after it failed to pay finance on A$60 million worth of debt. The receivership was handled by Ferrier Hodgson, and the company continued to trade throughout the process. [28] At the time it had 8 subsidiaries, some producing garden hose, Esky Coolers, film and plastic car parts and water tanks.

There were a number of reasons for the company's collapse. The company was competing with cheap Asian plastic imports. In the BTR and Austrim eras, the company had expanded exponentially, but this had cut down profit margins. The company also, under Alan Jackson, had moved into purchasing businesses in loss making sectors, including textiles, which were suffering huge downturns at the time. The company owned major iconic Australian brands but was unable to use them to generate cash to sustain the company.

The company had benefited from water tank arm of its business, which had received subsidies because of a drought, but when the drought broke Government subsidies stopped, and then tanks started being imported from Asia. In additions, the hard times in the car industry affected Nylex's car part business. The company had seen write downs for many of its businesses and had been supported by people like Kerry Stokes who had helped the business while others had pulled out. In addition to this, the overall Global Financial Collapse had taken its toll on the company.

At the time of collapse, it owed A$100 million to creditors. Some of the businesses were sold on at the time of collapse. [26] Esky coolers, a popular brand of lunch cooler, was sold to US company Colemans [29] [30] Most of its industrial/commercial real estate was sold off, much of it being turned into residential apartments. The large Mentone site, which had previously housed 1000 workers, was sold off for part commercial, part residential, though a heritage protected Nylex sign remains [9]

Current operations

The Nylex brand continues to exist, selling plastic garden hose and garden products throughout Australia, through large hardware outlets. [31] The company supports cricket in Australia, sponsoring the Melbourne Renegades. [32] The company is currently owned by AMES Australasia since a 2014 acquisition that cost A$36 million. This included other companies as well as Nylex during this purchase. [5]

A company previously owned by BTR Nylex as a subsidiary, Nylex (Malaysia) Berhad, operates as a major plastics manufacturing concern in Malaysia.

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References

  1. 1 2 Henningham, Leigh. "BTR Nylex thrives as frugal 'lean machine'." The Herald. August 17, 1987.
  2. ↑ Clark, Colin, Timothy Geer, and Barry Underhill. “THE CHANGING of AUSTRALIAN MANUFACTURING,” 1996. https://www.pc.gov.au/research/supporting/changing-manufacturing/changman.pdf.
  3. 1 2 "U.K.'s BTR Launches Startling Takeover Bid For Rest of BTR Nylex". Wall Street Journal. 24 July 1995. p. 3. ProQuest   308233965.
  4. ↑ Reier, Sharon. "The Man From Melbourne." Financial World - Europe' CEO of the Year. July 20, 1993.
  5. 1 2 AMES Australasia. “Nylex - AMES Australasia,” June 14, 2019. https://au.ames.com/nylex/.
  6. ↑ Centre, The University of Melbourne eScholarship Research. "Nylex Corporation Pty Ltd - Corporate entry - Encyclopedia of Australian Science". www.eoas.info. Retrieved 1 February 2020.
  7. ↑ "Nylex Limited (ASX:NLX)".
  8. ↑ Centre, Australian Science and Technology Heritage. "Technology in Australia 1788-1988, Chapter 9, page 662". ISBN 0908029497 . Retrieved 2 January 2022.
  9. 1 2 "Nylex and Mentone | Kingston Local History". localhistory.kingston.vic.gov.au. Retrieved 2 January 2022.
  10. ↑ Centre, Australian Science and Technology Heritage. "Technology in Australia 1788-1988, Chapter 9, page 662". ISBN 0908029497 . Retrieved 2 January 2022.
  11. ↑ Centre, Australian Science and Technology Heritage. "Technology in Australia 1788-1988, Chapter 9, page 662". ISBN 0908029497 . Retrieved 2 January 2022.
  12. ↑ "Nylex". AMES Australasia. Retrieved 2 January 2022.
  13. ↑ "Sir Peter John Derham AC, K.St.J. | Melbourne Grammar School". mgs.vic.edu.au. Retrieved 13 February 2023.
  14. 1 2 Stewart, Sally (25 September 2008). "High achiever who never said never". The Age. Retrieved 2 January 2022.
  15. ↑ "IN BRIEF". The Australian. 10 August 2018. p. 26. ProQuest   2085797915.
  16. 1 2 "Jackson aims for BTR Nylex on the cheap". Australian Financial Review. 7 August 1995. Retrieved 2 January 2022.
  17. ↑ "Nylex takeover looking like worldwide clean-up". Australian Financial Review. 24 July 1995. Retrieved 2 January 2022.
  18. ↑ "AUSTRALIA'S BTR NYLEX TO ACQUIRE FORMICA". Plastics News. 5 January 2013. Retrieved 2 January 2022.
  19. ↑ "The Mayne Report - The day Alan Jackson lost his cool". www.maynereport.com. Retrieved 13 February 2023.
  20. ↑ Mayne, Stephen (22 October 1998). "The day Alan Jackson lost his cool". The Daily Telegraph. Retrieved 2 January 2022.
  21. ↑ Ian, Porter (2 September 2003). "Symbolism Rules As Nylex Rises From The Corporate Graveyard". The Age. p. 1.
  22. ↑ Porter, Ian (2 September 2003). "Nylex to be reincarnated as Austrim sheds its past along with $72m loss". Sydney Morning Herald. p. 23. ProQuest   363827822.
  23. ↑ "Nylex: from household name to oblivion". Australian Financial Review. 21 February 2009. Retrieved 13 February 2023.
  24. ↑ "A Modern Life: Tablewares 1930s – 1980s | NGV". www.ngv.vic.gov.au. Retrieved 1 February 2020.
  25. ↑ "Esky auto box invented by Malleys - Australian food history timeline". Australian Food Timeline. 18 September 1950. Retrieved 2 January 2022.
  26. 1 2 Smith, Michael (4 August 2009). "Miners look to buy Nylex's listed shell". The Australian Financial Review. p. 46.
  27. ↑ Rawlinson, Clare (29 January 2015). "Iconic Melbourne clock makes mysterious return to life". ABC News. Retrieved 2 February 2020.
  28. ↑ "Esky-maker Nylex goes into receivership". ABC News. 12 February 2009. Retrieved 2 January 2022.
  29. ↑ Newton, John (12 October 2002). "Playing it cool". Sydney Morning Herald.
  30. ↑ "Esky no longer dinky-di". The Sydney Morning Herald. 2 July 2009. Retrieved 2 January 2022.
  31. ↑ "Nylex". AMES Australasia. Retrieved 1 January 2022.
  32. ↑ "Nylex makes a splash with the Renegades". Melbourne Renegades. Retrieved 1 January 2022.
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