Haitian's standardization efforts paying off

Kent Miller
PLASTICS NEWS CORRESPONDENT

Published: August 29, 2014 9:53 am ET
Updated: August 29, 2014 1:00 pm ET

Image By: Haitian International Holdings Ltd. Haitian's Helmar Franz

Related to this story

Topics Machinery, China, Asia

HONG KONG — Streamlined design efforts and robust export sales helped propel Ningbo, China-based injection molding machine manufacturer Haitian International Holdings Ltd. to strong profits in the first half of 2014, the company announced in its interim financial report.

Gross profits jumped 10.6 percent from the first half of 2013 to 1.2 billion yuan ($195 million) for the six months ending June 30. Revenues were 3.8 billion yuan ($618.7 million) a 5.2 percent rise from the previous year.

While year-to-year domestic sales in the face of a cooling economy inched up a scant 2 percent to 2.5 million yuan ($407,000), export sales vaulted 14 percent to 1.2 billion yuan. ($195 million). Exports now make up 31.6 percent of Haitian’s total sales. Haitian’s top foreign markets are Turkey, Brazil and Russia, the company said during an Aug. 28 presentation to investors in Hong Kong.

“Standardization and complexity reduction are the keys for exploiting efficiency results,” said Haitian executive director and chief strategy officer Helmar Franz. Franz is aggressively trimming the roster of components that the company’s 450 engineers can select from.

An engineer can always apply to a committee to add a component to the roster, he said, “but the committee president is me. It isn’t so easy for the engineer to come to me,” Franz added with a wry smile.

Turning to the macroeconomy, Franz was supportive of higher interest rates and reforms that make buyers think twice before making capital investment decisions.

“The new government is not looking at the topline of growth so much as the quality of the growth,” Franz said. “Now, not every time I need a new factory, [will] I build a new factory, but I use the existing one better. This is something new. The current policy is supporting efficiency, which we are very happy with.”

The downside, especially for Western companies selling into China, is the end of a “paradise” of aggressive capital investors.

In India, Franz said Haitian’s recently announced Ahmedabad-based facility will focus on customizing machines made in Haitian’s Ho Chi Minh City, Vietnam, factory for the local market.

“Some assembly can be done, but the prime issue is customization, better service,” he said.

Franz brushed off the impact of India’s antidumping efforts, which he said only apply to small and medium-sized hydraulic injection molding machines.

“It doesn’t hurt us so much as it hurts the local manufacturers… and now that they’re protected by the government, they have no competition. Then they get more expensive.”

While hydraulics continue to comprise the bulk of Haitian sales, the company is expecting its strongest growth in electrics and hybrids. Haitian expects to sell about 35,000 hybrids and electrics in 2014, up from 33,209 last year.

In a series of trade shows across Europe beginning in May, Haitian rolled out its new Zeres series of electric injection molding machines. An integrated hydraulic unit allows late-adopters to continue using their legacy hydraulic molds.

Within the next six months, Haitian will begin production in two new factories in Ningbo totaling 270,000 square meters. The Chunxiao facility will focus on producing electric machines. When fully operational, it will be able to turn out as many as 10,000 machines every year. Tong Tu Lu II facility will focus on large two-platen machines. Haitian already has 11 Ningbo factories.

Haitian is continuing its drive into applications engineering. A widespread practice among Western injection molding machine manufacturers, it is only beginning to catch on in China. The main challenge is a dearth of home-grown talent, Franz said.

“We cooperate with universities to get [engineers] trained. This will take some time.”


Comments

Haitian's standardization efforts paying off

Kent Miller
PLASTICS NEWS CORRESPONDENT

Published: August 29, 2014 9:53 am ET
Updated: August 29, 2014 1:00 pm ET

Post Your Comments


Back to story


More stories

Image

2014 US machinery shipments up 6 percent

November 25, 2014 5:17 pm ET

Through the first nine months of 2014 U.S. shipments of primary plastics equipment — for injection molding, blow molding and extrusion —...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Taipei Plas vandal and German firm trade lawsuits

November 25, 2014 1:26 pm ET

Taiwan businessman Karma Tang, who splashed red paint at German firm Baumüller GmbH's Taipei Plas booth, is in a messy legal battle.    More

Image

Auxiliary equipment maker Ross expands in India

November 25, 2014 1:12 pm ET

U.S. auxiliary equipment maker Charles Ross & Son Co. is expanding in India, opening a new plant early next year in Pune.    More

German plastics firms weigh options for Brazil

November 25, 2014 6:00 am ET

Brazil, the largest market in South America, has been a lure for foreign investors for many years, and in the past decade, it has enjoyed good economi...    More

Market Reports

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

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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