Nipsea bets on China's low-income housing plans

Nipsea Group, Asia's leading paint manufacturer, is planning to target China's low-income house building program, hoping the mammoth government-backed project could provide new momentum to its business.

After experiencing rapid growth since its entry into China in 1992, the Singapore-based group, known for its household brand Nippon Paint, came to an unexpected standstill in China last year, failing for the first time in 20 years to see any sales increase.

Goh Hup Jin, its chairman, said he blames China's efforts to prevent the real estate market from overheating, but adds that the government's speeding-up of plans to build homes for low-income families offers Nipsea huge potential.