A leading cosmetic packaging manufacturer in China announced May 21 an investment on Husky's injection molding systems for food packaging.
Publicly listed Shenzhen Beauty Star Co. Ltd. said its wholly owned subsidiary in Guangzhou has ordered two systems from Husky Injection Molding Systems Ltd. for a total of $2.16 million.
Each system includes molds, a Husky Hylectric injection molding press, a Husky hotrunner temperature controller, and a set of Husky auxiliary equipment, including a feeder, masterbatch mixer, chiller, robot, cooling system, cap closing equipment and conveyer.
These highly automated systems can produce 10,000 sets of products per hour, reducing cycle time and production cost, the company said.
The investment lays the foundation for the company to further increase its market share in high-end plastic food packaging.
The systems are based on customers' demands and orders, with the molds specified for the customers. If the customers' market conditions change, and the ordered volume falls short of the forecast, the customer will pay for the molds, the company said. "We can develop new products to make sure the capacity is utilized."
The company spent $1.2 million on Husky machinery in 2013, representing about 55 percent of the total spending of the same category.
Beauty Star reported 268 million yuan ($42.9 million) of sales in the first quarter, 5 percent higher than the same period of the previous year. However, net profit [excluding non-recurring profit or loss] tanked 92 percent to 1.2 million yuan.
Main reasons for the profit drop include falling orders and structural adjustments of orders; continued labor cost hikes; increased equipment depreciation and electricity spending of new equipment, among others.
These factors will continue an impact through the first half of 2014, the company said. It forecasts a 30-80 percent decline of net profit before deduction of non-recurring profit or loss for the first 6 months of the year.
The company's 2013 annual sales came in at 1.1 billion yuan and net profit reached 53.5 million yuan, not including non-recurring profit or loss.
