Chen Hsong hopes two-platen sales offset weakness in emerging markets

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: July 8, 2014 4:12 pm ET
Updated: July 8, 2014 4:15 pm ET

Related to this story

Topics Machinery, China, Asia

Difficulties in China and key emerging markets hurt profits for Hong Kong-based injection press maker Chen Hsong Holding Ltd. in its most recent fiscal year, but the company pointed to positive developments in selling large two-platen machines that helped hold sales steady.

The company, one of China’s largest makers of molding machines, said profit fell 22 percent in its fiscal year ending March 31, to HK$81.4 million (US$10.5 million), while sales grew 3 percent to HK$1.85 billion (US$238.7 million).

“China export growth has long been declining, and the wide-spread currency devaluations of developing countries during this financial year further caused export growth to drop to historical single-digit lows,” Chen Hsong said in a June 25 report to the Hong Kong Stock Exchange. “Even though export growth rebounded somewhat during the second half year, it was still persistently stuck in low territory —an accurate reflection of the increasingly difficult conditions of China’s export sector.”

The struggles were seen across emerging markets: “The currency exchange rates of many such developing countries, such as Brazil, Indonesia, Thailand and India … dropped substantially enough to seriously affect the group’s turnover in international markets.”

But the company pointed to some positives, including the launch of a complete product line of large tonnage two-platen machines manufactured in partnership with Japan’s Mitsubishi Heavy Industries Plastic Technology Co. Ltd., which are expected to contribute significantly to sales this year.

“Due to Mitsubishi’s extremely strict requirements regarding product quality and technical details, the group spent more than two years in cooperation with them to streamline our manufacturing process and to overcome the substantial learning curve and finally succeeded in bulk-production,” Chen Hsong said.

Chen Hsong said it shipped a 6,500 ton press to a customer in the Middle East in the fiscal year, and said it was the largest plastic molding machine yet manufactured in Asia.

The company also said sales for its manufacturing plant in Taiwan rose 27 percent to HK$145 million (US$18.7 million), as that unit saw rising sales to Europe and the United States. It said saw some encouraging signs among its newly established sales subsidiaries overseas, with sales in Europe rising 50 percent.

Chen Hsong said the current economic outlook is “full of uncertainties,” with China stuck in a period of adjustment and Europe showing signs of weakness as the European Central Bank became the first central bank in the world to adopt a negative interest rate policy.

“These uncertain factors raise the group’s concerns regarding the coming year, which is expected to be extremely difficult and challenging,” it said. “The group believes, however, that it can continue to reap healthy growth from a number of promising markets through its investments in international markets and the launch of new products and new technology.”


Comments

Chen Hsong hopes two-platen sales offset weakness in emerging markets

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: July 8, 2014 4:12 pm ET
Updated: July 8, 2014 4:15 pm ET

Post Your Comments


Back to story


More stories

Image

Amcor planning more growth in Asia

September 30, 2014 10:24 am ET

Flexible packaging firm Amcor Ltd. is rapidly expanding its presence in the Asian market. The company's top official in the region said it will soon...    More

Image

Uflex to build large flexible packaging plant in western India

September 30, 2014 10:01 am ET

Flexible packaging company Uflex Ltd. is planning a major new plant in the western Indian state of Gujarat.    More

Image

Malaysia's Scientex investing in PE, BOPP film capacity

September 30, 2014 9:51 am ET

Flexible packaging manufacturer Scientex Bhd, based in Malaysia, is planning investment of 300 million Malaysia ringgits ($91.4 million) over three...    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

Germans, Chinese question Plastindia move to Gujarat

September 29, 2014 4:39 pm ET

Two major international partners of the Plastindia trade show have raised serious concerns about the show organizer's decision to move it to another r...    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