UPDATE 1-NZ's Nuplex says to consolidate shares

* To consolidate shares on a 1-for-4 basis

* To reduce number of shares from 759 mln to 189 mln

WELLINGTON, June 2 (Reuters) - New Zealand resins manufacturer Nuplex Ltd (NPX.NZ) said on Tuesday it would consolidate every four shares on its register into one, sending the share price lower.

The consolidation comes after Nuplex in April raised about NZ$160 million ($104 million) through a seven-for-one share issue, as the company needed capital to pay off bank debt.

"Consolidation on a one-for-four basis will reduce the number of shares on issue to approximately 189.8 million, which is more appropriate for a company with Nuplex's current market capitalisation," chairman Rob Aitken said in a statement. The move will take effect from June 17.

Shares in Nuplex last traded down 6.5 percent, or 3 cents, at NZ$0.43. So far this year the stock has fallen around 60 percent compared with a 2.8 percent rise in the benchmark NZX-50 index .NZ50.

The company in February reported a 76 percent decline in first-half profit because of falling sales in weak markets, and said it needed to raise capital to manage its debt commitments.

It negotiated an easing in conditions of banking agreements for its senior debt cover, including a cap on dividends, and initially planned a NZ$110 million share placement, before choosing the rights issue.

Nuplex is New Zealand and Australia's largest maker and distributor of resins and polymers. It has operations in China, Vietnam and Holland.

The capital raising saw Nuplex's shares on issue rise from 81.7 million to 759.2 million. ($1=NZ$1.54) (Reporting by Adrian Bathgate)