ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter

Japan's Daiken acquiring New Zealand building materials maker

Company aims to expand its fiberboard business at home and abroad

TOKYO -- Building materials maker Daiken Corp. will acquire Dongwha New Zealand at the end of December, the company announced Tuesday, in an effort to expand its sales of medium-density fiberboard.

The size of the deal has not been announced, but it is thought to be around 10 billion yen ($89.7 million).

Both companies produce medium-density fiberboard, a material often used in housing construction. Daiken already has production centers in New Zealand and Malaysia and is hoping to expand operations through Dongwha's sales networks in Oceania and North America.  

Through its local subsidiary, Daiken will acquire all of Dongwha's shares from the Hong Kong-based parent company and other minority stockholders. Dongwha's sales were 91.59 million New Zealand dollars ($67 million) for the fiscal year ended December. 

Plywood is the more commonly used material in Japan, but Daiken is trying to promote MDF, which is highly durable. "This is just a first step toward expanding MDF operations," said Masanori Okuda, president of Daiken. "We will continue to actively invest if there are good deals going forward." 


You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media