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

Blow molding machinery maker opens first plant in Taiwan

October 1, 2014 1:27 pm ET

Taiwanese equipment maker Kin Precision Industry Co. Ltd. has opened a 2,000-square-meter, 25-employee factory in Taichung, Taiwan, with an eye to...    More

Image

Audacious vandal stuns Taipei Plas

September 29, 2014 4:59 pm ET

Melodrama erupted at the traditionally tranquil Taipei Plas trade show on Sept. 28 when a mysterious intruder flung red paint at the Baumüller...    More

Image

Shini pushes into western China

September 29, 2014 4:28 pm ET

Despite intellectual-property brigands, Taiwan's Shini Plastics Technologies Inc. is zestfully pursuing the enormous Chinese market for plastics...    More

Image

India changes its mind, again: PlastIndia will be in Gujarat

September 27, 2014 1:37 pm ET

TAIPEI, TAIWAN — Less than five months before the opening of India's largest plastics show, PlastIndia, its organizers have decided —...    More

Image

Global giant Foxconn to make, sell molding machines

September 26, 2014 2:48 pm ET

For years, Taiwan's Foxconn Technology Group has been the world's largest contract manufacturer for electronics, with more than 1 million employees wo...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

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

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

More Events