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

Bill Kent named Thermoformer of the Year

September 18, 2014 12:11 pm ET

Bill Kent flew 6 million miles in a 50-year career at Brown Machine LLC — where he began assembling thermoforming machinery on the factory...    More

Image

Flexibility for complexity key for Brampton

September 16, 2014 11:26 am ET

Blown film machinery maker Brampton Engineering Inc. is well positioned to meet growing demand for complex film structures, highly customized...    More

Image

US plastics machinery market still gaining strength in second quarter

September 15, 2014 5:01 pm ET

UPDATED — U.S. plastics machinery shipments in the second quarter continued to outperform activity in 2013, according to data from Society of...    More

Image

ATS goes global with acquisition of M+W Process Automation

September 10, 2014 2:49 pm ET

ATS Automation Tooling Systems Inc., a maker of factory automation systems in Cambridge, Ontario, has agreed to buy a German company M+W Process...    More

Image

Orenda says new pulverizer improves efficiency through cooling

September 10, 2014 1:41 pm ET

Orenda Automation Technologies Inc. will unveil a new pulverizer with new cooling technology at the Rotoplas conference for rotational molders, Oct. 6...    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