Qingdao, China – Mesnac reported a 15 percent estimated fall in revenue to 2.5 billion yuan (€349 million) in 2015. Net profit, however, rose by 9 percent to €29 million.
The revenue drop was mainly caused by slowed overseas and domestic economy, a sluggish rubber machinery sector and delayed order fulfilment, according to the company filing in February.
With overcapacity, trade frictions and increasingly stringent local investment policies, China’s tire industry is picking up speed to cull out its lower-end facilities and has been building less new projects.
To counter this downturn, Mesnac has been strengthening the efforts to develop new products with continuous investment in new materials, automated logistic systems and robotic equipment, said the filing.