Nuplex Industries is denying the reports in the Australian media that it is mulling over combining its chemical trading division with that of Australian corporation, Orica with a vision of divesting it.

On Tuesday, The Herald Sun accounted that the two are in discussions to fuse their units and then divest by a public share offer or trade auction.

The merger discussions were viewed as another step by Orica to develop a complete mining services performer. Orica investors vote tomorrow on a proposal to de-combine the firm's Dulux Group paint business.

The company said in a statement to NZX, "Nuplex is not involved in discussions with Orica on combining or merging its chemical trading platforms".

Nuplex is registered on the Australian and New Zealand stock exchanges.

It is a producer and distributor of polymer resins for coatings and compounds, and expert goods for the building, chemical, plastic and life sciences businesses.

According to the Herald Sun, a float could be valued between $A450 million to $A650 million.

Orica and Nuplex are the biggest across-the-board distributors of chemicals in Australia and New Zealand, jointly making up for around 20% of the market.

Today, in early trading, Nuplex shares had mounted 5.3% or 15c to $3.