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

P&G removing PE microbeads from its Crest brand toothpaste

September 18, 2014 1:57 pm ET

After months of prodding, Procter & Gamble Co., the makers of Crest brand toothpastes, say polyethlene microbeads will be completely removed from its ...    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Nolato Contour beefs up white room molding capabilities

September 18, 2014 11:56 am ET

Nolato Medical has extended its controlled environment options to include a white room at its Baldwin, Wis., Nolato Contour plant.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Image

Cascade Engineering founder Keller to step down as CEO

September 16, 2014 8:33 pm ET

Cascade Engineering Inc. is undergoing a transition as President Mark Miller will also add the role of CEO, replacing founder Fred Keller, who has led...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events