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, Medical, Consumer Products, Injection Molding, Molds/Tooling

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

Small is beautiful in Nissei's newest press

November 21, 2014 2:14 pm ET

Responding to customer demand for flexibility, Japanese plastics-equipment manufacturer Nissei Plastic Industrial Co. Ltd. is demoing a caster-...    More

Image

Three advancements have driven injection molding technology

November 21, 2014 6:00 am ET

Injection molding technology has made major advances in the last 25 years, from largely a world of shoot-and-ship to doing as much as possible at the ...    More

Image

Netstal, Electra Form team up for PET preform partnership

November 20, 2014 3:15 pm ET

The Netstal division of Krauss-Maffei Corp. is teaming up with Electra Form Industries in a partnership to offer PET preform machines and molds as a...    More

Image

High pressure RTM systems moving from Europe to Mexico

November 20, 2014 4:24 pm ET

Engel Holding GmbH's subsidiary in Mexico says it has sold the first high pressure resin transfer machine system (HP-RTM) in the Americas to a...    More

Image

Thomson Plastics opens N.C. plant

November 20, 2014 3:12 pm ET

Custom injection molder Thomson Plastics Inc. has opened a new manufacturing facility in Lexington, N.C.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events