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 Asia, China, Machinery

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

Small is beautiful in Nissei's newest press

November 21, 2014 2:14 pm ET

Responding to customer demand for flexibility, Japanese plastics-equipment manufacturer Nissei Plastic Industrial Co. Ltd. is demoing a caster-...    More

Image

Three advancements have driven injection molding technology

November 21, 2014 6:00 am ET

Injection molding technology has made major advances in the last 25 years, from largely a world of shoot-and-ship to doing as much as possible at the ...    More

Image

Renners leaving Sumitomo (SHI) Demag

November 21, 2014 10:01 am ET

Christian Renners is leaving injection molding press manufacturer Sumitomo (SHI) Demag Plastics Machinery GmbH, the company announced Nov. 21.    More

Image

Netstal, Electra Form team up for PET preform partnership

November 20, 2014 3:15 pm ET

The Netstal division of Krauss-Maffei Corp. is teaming up with Electra Form Industries in a partnership to offer PET preform machines and molds as a...    More

Image

High pressure RTM systems moving from Europe to Mexico

November 20, 2014 4:24 pm ET

Engel Holding GmbH's subsidiary in Mexico says it has sold the first high pressure resin transfer machine system (HP-RTM) in the Americas to a Mexican...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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 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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events