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

Asia to remain chemical giant but US shale will bring competition

July 23, 2014 1:00 pm ET

A new IHS Chemical report on global spending for chemical production predicts capacity additions will peak in 2014 at $120 billion and then will...    More

Image

Munson Machinery expanding assembly, testing operations

July 22, 2014 2:02 pm ET

Munson Machinery Co. Inc. is expanding its headquarters factory by about one-third in Utica, N.Y., where the company makes mixing, blending and size-...    More

Image

Better tariff strategy needed in India

July 22, 2014 12:39 pm ET

What's the best way for an emerging economy to strengthen an under-developed plastics industry? Protective tariffs around key sectors, or open the...    More

Image

Super typhoon ravages South China

July 21, 2014 3:58 pm ET

Super Typhoon Rammasun, the most powerful typhoon that has landed in China in four decades, has left parts of South China devastated, and the local...    More

Image

Windmöller & Hölscher looking to continued growth in China

July 21, 2014 3:40 pm ET

With 2013 global sales of 600 million euros, China has grown into an important export market for Windmöller & Hölscher KG, second only to the United S...    More

Market Reports

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

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

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

More Events