Qingdao, China – The world’s second largest rubber machinery maker Mesnac reported a 15 percent drop in annual revenue last year to €344 million.
In its transitional period, China’s tire sector saw a fall in investment last year, leading to a slowed rubber machinery sector, said the company’s annual report released in April.
Net profit rose by 9 percent to €29 million, although about half was from paring its stakes in Shanghai-listed tire maker Sailun Jinyu by 1 percent to 2.6 percent.
Sales of synthetic rubber materials jumped 53 percent to €67 million, partially thanks to its 2014 acquisition of Qingdao Yikesi in the sector, the company told ERJ; the rest of its major businesses, rubber machinery, robot logistics and chemical machinery, showed 20-40 percent decrease.
Overseas sales* fell by 17 percent in 2015, accounting for a stable 12 percent of Mesnac’s total revenue.
“We have been actively optimizing our client structure and have seen a greater proportion of mid- to high-end orders, although it would take six to eight months to show in the financials,” the company told ERJ.
* Editor's Note: The proportion of overseas sales given in Mesnac's annual report is significantly lower that previously reported by ERJ - based on comments from company officials. We are now checking this disparity.