CIMC Enric Holdings Limited (CIMC ENRIC) recently announced its audited annual results for the year ended 31st December 2013 and has seen turnover rise 23.5% over full year 2012.
Modest growth was seen in the company’s chemical equipment segment, which includes tank containers for chemical liquids, liquefied gas and cryogenic liquids, while its energy equipment segment continued its ‘robust growth’.
This is thought to be due to the ongoing growth in global demand for equipment for the storage, transportation, distribution and vehicle application of natural gas, particularly in China. The energy equipment business includes LNG trailers and tanks.
As a result of the performance of both of these segments, coupled with CIMC ENRIC’s growing liquid food equipment business, the turnover of the group for 2013 increased by 23.5% to RMB 9.9bn ($1.6bn approx.) over the previous year (2012: RMB 8.082bn).
The energy equipment segment continued to be the dominant segment of the group, with revenue rising by 25.8% to RMB 5.37bn (2012: RMB 4.26bn) and accounted for 53.8% of the group’s total turnover. LNG equipment was the main revenue contributor of this segment.
The chemical equipment segment recorded a turnover of RMB 3.09bn (2012: RMB 2.84bn) representing a modest growth of 8.7% on the back of a gradually recovering global economy. The segment made up 31% of the group’s total turnover (2012: 35.2%).
Research and development
In response to market development and needs, CIMC ENRIC devoted around RMB 145m ($23.3m) to the research and development (R&D) of new products and manufacturing technologies in 2013.
Considerable R&D was carried out in the energy equipment business and where LNG technologies are concerned in particular, conducted projects for LNG refuelling station systems, LNG refuelling barges, and LNG fuel vessels and supporting solutions. R&D was also carried out in the area of composite cylinders for hydrogen storage, and CNG-related applications.
The chemical equipment arm focused on the development of tank containers for hazardous liquids, tank containers for liquefied gas, special tank containers and lightweight tank containers.
The group remains prudently optimistic about the outlook of the sectors it is engaged in, the CIMC ENRIC statement confirmed.
Going forward, the company strives to become a world-leading manufacturer of specialised equipment and a provider of related project engineering services in the energy, chemical and liquid food industries. It aims to achieve this via its acquisition and expansion strategy, building a broader footprint around the world, and taking advantage of the increasing growth of LNG technologies, especially in China.
In order to capitalise on the business opportunities in overseas countries and diversify revenue sources, the group is expanding its overseas markets; continuous efforts are put into emerging markets, as well as natural-gas-rich countries like Russia and the US, and the group has set up representative offices in South-east Asia and a company in the US.
In terms of its LNG aspirations, CIMC ENRIC sees another wave of growth ahead. Due to the concern for air pollution, cost reductions and the promotion of natural gas as a vehicle fuel by China’s oil and gas enterprises, the demand for natural gas application equipment, such as on-vehicle LNG fuel tanks, has been stimulated.
The group is well prepared for the potential huge demand for LNG equipment for LNG vessels and sees the development of LNG vessels in China as potentially providing the next growth driver for LNG equipment manufacturers like itself.