Pipe extruder Liansu plans more expansion in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: August 21, 2012 6:00 am ET

Related to this story

Topics Construction, Pipe/Profile/Tubing

HONG KONG (Aug. 21, 1:50 p.m. ET) — China Liansu Group Holdings Ltd., the country’s largest plastic pipe maker, plans a significant expansion to meet growing domestic demand, with new factories slated for Hainan, Yunnan, Shandong and Guangdong provinces.

Liansu disclosed the investments in an earnings report filed August 20 with the Hong Kong stock market, where it said that sales increased 5.6 percent in the first half of the year, to 4.81 billion Chinese yuan (US$726.2 million), while profit was up 11.6 percent, to 598 million Chinese yuan (US$94.0 million).

That’s actually significantly slower sales growth than the 31 percent the firm saw in 2011, a result of tougher conditions in China this year and the government’s decision last year to tighten credit and slow the housing market.

But the company said overall prospects for plastic pipe remain good, pushed by China’s general trends toward increased urbanization, construction of affordable housing, investments in water conservation and revamping of outdated pipe networks.

Liansu, based in Foshan, Guangdong province, did not provide details of the additional expansion in its filing but said the four facilities are part of a “new phase of capacity expansion… to ensure that the market demands are being met.”

The company said it expects to have production capacity between 1.65 million and 1.75 million metric tons by the end of the year. In recent years it has been expanding heavily beyond its base in Guangdong.

“Stable growth in the demand for plastic pipes is still expected given further advancement of China’s industrialisation, urbanisation and informatisation, further expansion of domestic demand and ongoing implementation of major construction projects in affordable housing, urban infrastructure and new agricultural villages,” the company said. “The Group is fully confident that it will enjoy sound and stable business development in the second half of 2012.”

The company said it was able to maintain profit growth in spite of the sales slowdown because it maintained cost controls, adopted an “optimized” pricing strategy and attracted new customers.

The volume of pipe and fittings sold rose 9.1 percent in the first half of the year, compared to the same period in 2011, to 470,000 metric tons, even as average selling prices fell, Liansu said.

Other focuses for the immediate period include expanding its national sales network and trying to better tap international markets, along with continuing to diversify into related plastic construction products such as plastic-steel doors and windows and kitchen and sanitary products, the company said.


Comments

Pipe extruder Liansu plans more expansion in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: August 21, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Composite bridge maker also leading the way in installation

August 22, 2014 1:21 pm ET

Lightweight, low maintenance and strong, fiber-reinforced polymer (FRP) bridge decks finally are crossing the line from specialty projects to wider...    More

Image

Ply Gem continues acquisition streak, buying Simonton for $130 million

August 20, 2014 2:33 pm ET

Building materials manufacturer Ply Gem Holdings Inc. will acquire Simonton Windows from Fortune Brands Home & Security in a $130 million deal that...    More

Image

Pactiv selling building products unit to Ireland's Kingspan

August 19, 2014 3:54 pm ET

Irish building material manufacturer Kingspan Group plc is acquiring the insulation business of Lake Forest, Ill.-based Pactiv Building Products for...    More

Image

Mexichem buys HDPE pipe extruder Dura-Line Corp.

August 18, 2014 2:05 pm ET

UPDATED — PVC pipe and specialty chemicals maker Mexichem SAB de CV said Monday it has agreed to buy Dura-Line Corp., a prominent manufacturer...    More

Image

Acoustiblok soundly defeats cable show competitors

August 15, 2014 12:02 pm ET

Did you hear what happened when an ear-piercing train horn was enclosed in a flexible plastic membrane only a quarter-inch thick? Nothing.    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events