Singapore’s Sunningdale consolidating; opening Brazilian facility

Facing rising costs in China and Malaysia, tooling, mould and plastic products maker Sunningdale Tech has set up a company in Brazil known as Sunningdale Tech Plásticos (Brasil). It will start up in the third quarter of this year “barring any unforeseen circumstances”. Sunningdale also operates a facility in Mexico.

The Singapore-headquartered company, in its first quarter results, said that “the minimum wage increase and slow growth in China, pricing pressures from customers and high increase in Malaysia utility rates (which are significant to our operating costs) continue to squeeze margins.”

Its business segments, comprising Automotive, Consumer/IT and Healthcare, remain stable though it said “the operating environment remains competitive and challenging.”

“The group continues to receive enquiries for new businesses. Filling up our southern China facility capacity remains our top priority. All other facilities remain busy with healthy orders,” said the firm.

For the first quarter, the group's revenue decreased by 4% from S$110.1 million in 1Q13 to S$105.7 million in 1Q14. The Singapore public-listed firm also said its net profit increased to S$8.5 million in 1Q14 compared to S$2.3 million in 1Q13.

Meanwhile, in line with its restructuring and productivity efforts, it is consolidating its operations in Sweden by moving to a new facility in Latvia this quarter, and expects further growth from its Batam facility in Indonesia, which it opened last year to cater to a global consumer electronics manufacturer.

(IMA)

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