Lower tank orders hit CIMC

Weak demand for new standard tank containers was reflected in CIMC Enric’s annual figures.

The group’s chemical equipment division, which covers tank container manufacturing, saw revenue decrease by 19.9 percent in 2015 to RMB2.7 million (US$0.4 million) due to a fall in the sales volume of standard tanks which more than offset an increase in demand for special tank containers during the year.

In recent years, the chemical equipment division has recorded modest growth on the back of previous years’ global economic recovery. In 2014, as the average selling price of tank containers was decreasing, customers purchased more units for inventory.

But, in 2015 the slowdown in global economic growth continued to impact on the chemical industry, and the standard tank container business has experienced cyclical fluctuations of the chemical market. Moving into 2016, CIMC Enric says growth in standard tank containers is expected to slow down in the difficult economic environment. Due to the recent fall in steel prices, the major raw material cost, the group expects the average selling price of tanks will remain under pressure in 2016.