Chairman Michael Goldberg says the international market for consumer durables has become more competitive over the past six months with the Asian crisis and the proliferation of producers in China. But exports are expected to be boosted by midyear, with new low-cost products, which are currently in tooling. For Nu-World, this further Asian cost cutting must be another incentive to cut production costs. Already, this has put the brakes on the group's impressive surge in exports. However, Nu-World's exports provide the group with hard currency income and shareholders with a rand hedge element to their investment.
Management says much of the group's growth is likely to come from exports.
Nu-World exports pressing irons, jug kettles, hot plates, food processors, toasters, electric frying pans, wiring, industrial switches and heaters. The UK and European community are the main markets for Nu-World's domestic appliances. One of the group's first goals was to become a dominant player in the southern Africa small electrical appliance market. African exports continue to grow rapidly. But penetrating the African market has its difficulties.