Hong Kong's Karrie develops own brand, looks into medical molding

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: July 14, 2014 4:28 pm ET
Updated: July 14, 2014 4:32 pm ET

Image By: Karrie International Holdings Ltd. Karrie International Holdings Ltd. is looking to develop more medical business and its own households products line to reverse falling sales and profits.

Related to this story

Topics China, Consumer Products, Medical, Injection Molding

Hong Kong-based plastics molder Karrie International Holdings Ltd. plans to develop its own brand of household products and diversify into medical manufacturing.

The moves are aimed at reversing falling sales and profit in its most recent fiscal year.

The company, which has 180 injection molding machines in factories in mainland China, said it was looking for new markets to turn around sales in its manufacturing unit that dropped 11 percent, to HK$2.38 billion (US$307.1 million).

It said business slowed in its core office equipment and server casings markets, but pointed to what it said were positive signs in its plastic molding business.

“Turnover from the industrial business illustrated a downward trend… however, the molding business witnessed relatively significant growth, as a result of the commencement of development of new models of Fullhouse World household products series, servers and POS machines,” it said, adding that that would “lay a firm foundation for the robust operations of the group’s industrial business in the next three years.”

The company said it expects the Fullhouse household products to become a main growth driver for its industrial business and help it transition from an industrial OEM to a brand-based creative enterprise. The household product line will also help utilize the extra capacity in Karrie's plastics manufacturing.

“The group will utilize spare capacities on plastic and molds to swiftly set up a team responsible for product design, project development, production and marketing of Fullhouse World household products,” it said.

Karrie is also "looking into the possibility of tapping into the areas of medical and healthcare equipment/instrument." It said in a June 27 financial report to the Hong Kong Stock Exchange that “a clean plastic injection production workshop will be set up to create an environment required for production of plastic containers and medical equipment.”

That would be on top of HK$106.4 million (US$13.7 million) in capital expenditures in the fiscal year ending March 31, including for a new metal components manufacturing facility in Guangdong province that is slated to open by March.

The company said profit in its manufacturing unit fell about 6 percent, to HK$99.8 million (US$12.9 million), but it said a concerted program of automation and cost cutting limited the damage. It said it was satisfied with the unit’s performance.

Karrie also disclosed that its new consumer and service businesses lost money. The company has opened wedding photography stores in Hong Kong and Fullhouse themed restaurants there and in mainland China and is trying to develop a hotel business.   

“The performance of the consumer and services business segment was disappointing, with turnover aggregating HK$23,790,000 (US$3.07 million)… still failing to break-even and posting an operating loss of approximately HK$52,705,000 (US$6.8 million),” the company said.


Comments

Hong Kong's Karrie develops own brand, looks into medical molding

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: July 14, 2014 4:28 pm ET
Updated: July 14, 2014 4:32 pm ET

Post Your Comments


Back to story


More stories

Image

Jarden hiring for new plastics plant

December 19, 2014 1:45 pm ET

Consumer products conglomerate Jarden Corp. is hiring plastics technicians for a new operation in Erlanger, Ky.    More

Image

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Röchling buys two UK firms

December 18, 2014 9:24 am ET

Germany's Röchling Engineering Plastics SE & Co. KG has expanded its presence in the high-performance plastics market by acquiring two British firms...    More

Image

Bayer launches PC sheet production in Guangzhou, China

December 17, 2014 6:00 am ET

Bayer MaterialScience (BMS) has started its new polycarbonate sheet production plant at its Guangzhou, China, site.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

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

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