Nippon Aqua Sees Stable Operations Despite Middle East Supply Risks
Nippon Aqua (TYO:1429) said Middle East tensions and tighter urethane supply conditions have not materially affected its operations or earnings and are instead driving new business opportunities, according to a Friday filing on the Tokyo Stock Exchange.The company's diversified procurement network, direct sourcing from overseas suppliers and inventory base across 26 locations in Japan have helped maintain stable raw material supplies despite rising prices and industry shortages, it said.Inquiries for contractor changes and shifts from board insulation to on-site foamed urethane insulation are increasing, alongside stronger demand for raw material supply in large industrial projects, Nippon Aqua said.The company will continue strengthening procurement, logistics and installation capacity while monitoring developments in the Middle East and raw material markets, it said.
