Chen Hsong looks overseas to balance softness in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 27, 2013 2:08 pm ET
Updated: June 27, 2013 2:09 pm ET

Related to this story

Topics Machinery

One of China’s largest plastics equipment makers, Hong Kong-based Chen Hsong Holdings Ltd., will focus on export markets to make up for weakness in mainland China and Taiwan that lowered sales 2 percent to HK$1.79 billion (US$230.7 million) in its most recent fiscal year, the company said in a June 27 report.

Still, the firm said it was seeing “significant sales increases” from its moves into making large-tonnage injection molding machines, including delivering what it said was the largest Chinese-made injection press — a 4,500-ton ultra-large two-platen press — to a European customer.

And the company said it planned this year to start manufacturing ultra-large machines using technology licensed from Japan’s Mitsubishi Heavy Industries Plastic Technology Co. Ltd.

Chen Hsong expects continued sales growth in its large tonnage machines and in international markets.

“The group’s strategy toward expanding market share amidst cloudy global economic prospects is to increase investments in developing international markets,” it said in a filing to the Hong Kong Stock Exchange detailing results for the fiscal year which ended March 31. “In China, the group will strive to achieve respectable results.”

It said international sales rose 11 percent to HK$511 million (US$65.9 million), while mainland China and Hong Kong dropped 3 percent, to HK$1.17 billion (US$150.9 million).

Sales in Taiwan nose-dived 32 percent to HK$114 million (US$14.7 million), which it attributed to weak demand in overseas markets hurting Taiwan’s export-oriented industry.

The company said in May it opened a sales and support office in Brazil.

“The weak economy in China had a serious impact on customer confidence which in turn suppressed capital investments,” said. “This was especially pronounced in manufacturing sectors producing consumer products (such as household appliances and general electronic goods) as well as producing for export.”

It said it saw a “marked sales decline” in demand for small-and-medium tonnage machines. Profit for the year fell 35 percent, to HK$104 million (US$13.4 million), it said.


Comments

Chen Hsong looks overseas to balance softness in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 27, 2013 2:08 pm ET
Updated: June 27, 2013 2:09 pm ET

Post Your Comments


Back to story


More stories

Image

CPM Extrusion, ECON launch new line of underwater pelletizers

April 23, 2014 11:25 am ET

CPM Extrusion Group and ECON GmbH unveiled their brand new EUPC line of underwater pelletizers today at ChinaPlas held in Shanghai, China.    More

Image

TSM growing into a second generation of leadership

April 23, 2014 12:50 pm ET

This is a time of great growth for the Dundalk, Ireland-based TSM Control Systems, a company that has created a name for itself since 1977 by...    More

Quality Vision buys ShapeGrabber

April 23, 2014 10:19 am ET

Quality Vision International Inc. of Rochester, N.Y., has purchased ShapeGrabber Inc., a maker of automated three-dimensional scanners, in a deal...    More

Image

Top export markets for Italian machinery and molds

April 17, 2014 9:00 am ET

Top export markets for Italian machinery and molds    More

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United States”...    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events