Haitian reports record sales and profit on 'mild' recovery in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 26, 2014 2:52 pm ET
Updated: March 26, 2014 2:54 pm ET

Related to this story

Topics Machinery, China

Chinese injection press maker Haitian International Holdings Ltd. said a modest recovery in China’s plastics industry last year and the release of the next generation of its molding machines pushed sales up 13.7 percent, to a record 7.2 billion Chinese yuan (US$1.17 billion).

The Ningbo-based company, which is one of the world’s largest makers of molding machines, said that while the global outlook is definitely mixed, its China sales rose 19 percent in 2013, to 4.97 billion yuan ($808 million).

“Notwithstanding the fact that [the] Chinese [plastic injection molding machinery] market is still far from full recovery and only showed a mild recovery in 2013, we still achieved a record level of revenue and profit,” the company said.

“Unlike the overheated level in 2010, which was distorted by the release of suppressed CAPEX after the financial crisis in 2008 and 2009, we believe the growth of demand in [plastic injection molding machinery] will be in a more sustainable way,” it said. “The [domestic] market has started to move from stagnation to slight recovery.”

It said that was driven by several factors including the continuous increase in plastic products consumption, urbanization and rising personal incomes in China.

Net profit rose 22 percent to 1.2 billion yuan ($195 million), which the company attributed to higher margins with its second generation versions of its Mars, Venus and Jupiter machines, more efficiency in production and lower steel costs.

Haitian said it was proceeding with previously announced plans for two new factories in Ningbo to handle the increased demand.

Globally, it said the situation was mixed.

Sales to developed markets like the United States and South Korea showed a strong increase, and the U.S. became Haitian’s third-largest export market.

But emerging markets like Turkey and Brazil saw sales shrink, because of slower growth, political instability and investors leaving those markets in response to the U.S. government getting ready to end its quantitative easing policies, Haitian said.

“We cannot disregard that there remains some fragility in the economic outlook and we need to be cautious,” the company said, noting other factors like the slowdown in China’s manufacturing sector since January and political flashpoints like Ukraine.

Still, it said in its business, sales of its second generation of Mars, Venus and Jupiter machines rose 18 percent, 22 percent and 39 percent, respectively, last year.

Haitian said it would focus future development on all-electric machines made by its Zhafir unit, moving larger sized machines to two-platen designs and promoting cost-efficient designs.


Comments

Haitian reports record sales and profit on 'mild' recovery in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 26, 2014 2:52 pm ET
Updated: March 26, 2014 2:54 pm ET

Post Your Comments


Back to story


More stories

Image

Enor expanding in S.C., moving toy production to U.S. from China

August 20, 2014 4:01 pm ET

Wal-Mart Stores Inc. has convinced toy producer Enor Corp. to expand U.S. production at the expense of sourcing from China.    More

Image

Milacron commits $30 million to investment in India

August 20, 2014 5:42 pm ET

MUMBAI — Cincinnati-based Milacron LLC plans to invest $30 million over the next three years in India. The investments will double capacity at...    More

Image

Cooper-Standard JV to focus on Asia

August 20, 2014 10:17 am ET

Cooper Standard Automotive Inc. is forming Cooper Standard Inoac Pte. Ltd. — a joint venture with Inoac Corp. of Japan — to expand the...    More

Image

Report lists China's top 10 plastic mold makers

August 18, 2014 1:35 pm ET

A new market report ranks the top 10 players in China's plastic mold industry, showing strong geographic concentration in the Yangtze River Delta and ...    More

Image

Trade group lists China's top plastics machinery manufacturers

August 15, 2014 9:58 am ET

The China Plastic Machine Industry Association has unveiled its latest rankings of the top 25 plastics machinery suppliers in China as well as leading...    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events