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

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Auto, medical, packaging all lead to solid sales for compounding extruders

December 18, 2014 6:00 am ET

Compounding extruder sales tend to be cyclical, but machinery makers report another solid year — thanks to automotive, medical, food packaging...    More

Image

Milacron opening Mexico technical center, considers another in Brazil

December 16, 2014 12:58 pm ET

Milacron LLC plans to officially open a new technical center in Querétaro, 140 miles northwest of Mexico City, early in 2015, and the company is...    More

Image

Guangdong machinery maker adds another plant

December 15, 2014 6:00 am ET

TAIPEI, TAIWAN — Extrusion thermoforming equipment specialist Guangdong Designer Machinery Co. Ltd. plans to open a new 70,000-square-meter...    More

Image

Italian auxiliary company Moretto sets up a U.S. facility

December 12, 2014 1:09 pm ET

Italian auxiliary equipment manufacturer Moretto SpA has opened its first U.S. operation, in Columbus, Ohio, to handle sales, service and spare parts.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events