Sunningdale challenged by rising Chinese labor costs

By Gurdip Singh
Correspondent

Published: March 2, 2012 6:00 am ET

Related to this story

Topics Automotive Consumer Products Medical Injection Molding Molds/Tooling
Companies & Associations

SINGAPORE (March 2, 1:15 p.m. ET) — Sunningdale Tech Ltd. recorded a net loss of S$11.42m (US$9.13 million) last year, citing challenges of managing production costs while bearing price pressure from customers.

Overall 2011 was a challenging year for the Singapore-based injection molder and toolmaker, with tremendous pressure on margins from price pressure from customers and rising labor costs in China.

Sales, thanks to gains from the Healthcare and Mold Fabrication businesses, increased 5.8 percent to S$426.11 million (US$340.61 million). The company had a net profit of S$13.8 million (US$11 million) a year ago.

Sunningdale Tech also took in foreign exchange losses from the weakening of U.S. dollar, Hong Kong dollar and euro against operating costs denominated primarily in Singapore dollars, Malaysia ringgit and Chinese renminbi.

The Automotive business in 2011 was flat. “While the group remains a leader in bezels, we are also trying to expand horizontally into other automotive plastic parts, penetrate into new customers and seek opportunities in emerging markets,” the company said.

“We have consolidated our automotive parts manufacturing into the Johor plant [in Malaysia] so as to improve productivity and efficiency, while scaling down the Bintan plant [on an Indonesian island],” the company added in a filing with the Singapore Exchange.

Sales for the Consumer/IT business in 2011 also remained flat as one major customer changed supply strategy. But this was compensated by orders from new customers which would start mass production in the second half of this year.

Healthcare business expanded its customer base and secured new programs that will start mass production in the second half of this year.

The tooling facilities were extremely busy with strong orders last year with the momentum expected to carry into this year.

“We continue to add capabilities to address market needs across the regions,” the company said.

However, the uncertain economic outlook would make 2012 challenging, Sunningdale Tech cautioned.


Comments

Sunningdale challenged by rising Chinese labor costs

By Gurdip Singh
Correspondent

Published: March 2, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Image

DuPont exec: Still lots of lightweighting needed in the auto industry

March 23, 2015 6:00 am ET

In that role, Jeffrey Sternberg is responsible for bringing the breadth of DuPont advanced materials — as well as renewably sourced materials...    More

Image

How Faurecia made over a relic

March 23, 2015 6:00 am ET

Everything about Faurecia SA's interior trim plant in Saline, Mich., is big.    More

Image

Magna investing $135 million for new exteriors plant in Mexico

March 18, 2015 5:04 pm ET

Magna International Inc has started construction of a $135 million automotive exteriors manufacturing facility in Querétaro, in central Mexico.    More

Image

Auto supplier Visteon seeking new CEO

March 17, 2015 10:04 am ET

Visteon Corp. said Monday CEO Tim Leuliette will step down by the end of the year.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events