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 Asia, China, PVC, Materials Suppliers

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

Oxford Polymers adds compounding capacity

January 30, 2015 1:16 pm ET

Materials maker Oxford Polymers has increased its compounding capacity by installing a new single-screw extrusion line.    More

Image

Marval's next generation expands capacity

January 30, 2015 1:27 pm ET

MAMARONECK, N.Y. — There’s a lot of history at Marval Industries Inc., but the 59-year-old compounding firm also is looking toward the...    More

Image

Lubrizol buys Brazil-based coatings technology manufacturer

January 30, 2015 11:50 am ET

Specialty chemicals company Lubrizol Corp. of Wickliffe, Ohio, said it has acquired a Brazilian company that makes coatings technology for products...    More

Image

US loses top investment destination spot to China

January 30, 2015 11:14 am ET

China has overtaken the United States as the leading global destination for foreign direct investment, according to a new report.    More

Image

China to lead the way on robots

January 30, 2015 11:12 am ET

More industrial robots will be operating in China’s production plants than in the European Union or North America by 2017.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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