Chinese PVC maker posts loss, former leader faces criminal charges

By Nina Ying Sun
Assistant Managing Editor

Published: March 25, 2014 9:36 am ET
Updated: March 25, 2014 9:41 am ET

Related to this story

Topics PVC, Materials Suppliers, China, Asia

China’s Sichuan Jinlu Group Co. Ltd. reported annual net loss of 174 million yuan ($30 million) in 2013, citing natural disasters and the fall of its former chairman as “worsening factors.”

Jinlu produced 261,322 metric tons of PVC resin last year, 7.5 percent less than the previous year. Operating revenue dropped 7.7 percent to 2 billion yuan ($321 million).

The Deyang, Sichuan-based company reported a profit of 16 million yuan ($2.6 million) in 2012.

Jinlu attributed the sizable loss in 2013 to “fierce competition” that caused “tremendous difficulty and pressure” to its operations. Due to a slowing economy and industry overcapacity, China’s PVC resin market was plagued by weak demand and price slump in the past year.

It also blamed storms as well as mud and rock slides in July 2013 for “adding difficulty” to its production.

The company also noted the unusual change of leadership and ownership in the company as a “grim test and challenge” to its stability.

Jinlu’s former chairman Liu Han, a 49-year-old multi-billionaire and high profile philanthropist, was detained by Chinese police in March 2012 for a series of suspected criminal charges including forming and leading mafia, homicide, and harboring criminals. The prosecution process started last month.

Publicly listed Jinlu said in its annual report that Liu stepped down in August.

Deyang’s State-owned Assets Management Co. Ltd. (SAMC) now is Jinlu’s second largest shareholder. It is lending Jinlu a one-year loan of no more than 100 million yuan ($16 million).

Its largest shareholder, Sichuan Hongda Group Co. Ltd., has agreed to have SAMC exercise its shareholder’s rights on its behalf.

Jinlu’s new chairman Zhang Changde is an official from Deyang government’s state assets committee, which owns SAMC.


Comments

Chinese PVC maker posts loss, former leader faces criminal charges

By Nina Ying Sun
Assistant Managing Editor

Published: March 25, 2014 9:36 am ET
Updated: March 25, 2014 9:41 am ET

Post Your Comments


Back to story


More stories

Image

Experts explain why resin sales are down in a healthy US economy

February 27, 2015 1:58 pm ET

The economies of the U.S. and Canada posted solid growth in 2014 — even though resin demand in those countries lagged behind.    More

Image

Industry vet Dwight Morgan joins M. Holland

February 27, 2015 1:55 pm ET

Resin distribution leader M. Holland Co. has hired industry veteran Dwight Morgan as its vice president of corporate development.    More

Image

Wittmann, Illig among machinery firms boosting investments in India

February 27, 2015 1:34 pm ET

GANDHINAGAR, INDIA — Expected growth in the Indian plastics market is leading several global machinery firms to make investments there,...    More

Image

Indian masterbatch makers growing locally and thinking globally

February 27, 2015 1:30 pm ET

GANDHINAGAR, INDIA — India’s masterbatch makers are expanding their domestic capacity to meet growing demand, as some are also moving...    More

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in Asi...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

Plastics in Mexico - State of the Industry Report

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

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events