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Shenyang Yuanda To Merge Plants At New Site

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May 28, 2019

Burckhardt Compression said a new manufacturing plant at Shenyang, China, will be operational in the fall of 2020.

Two years ago, the Switzerland-based company acquired a 60% stake in She­nyang Yuan­da Com­pres­sor Co. Ltd., the leading reciprocating compressor manufacturer in China.

Burckhardt said an existing plant is being relocated because Shenyang city officials decided to convert the site, which has been engulfed by the rapidly growing city of Shenyang, to residential use.

Two Shenyang Yuanda Compressor plants will be consolidated at a larger site, which will result in a redesign of processes and improved efficiency. Burckhardt said the Chinese company’s 2018 sales were above expectations despite a challenging market environment.

In its annual report to stockholders, Burck­hardt said its new orders rose 25% to CHF 658 million but sales were only 0.9% higher at CHF 599 million. Consolidated net income was nearly 11% higher at CHF 32.2 million.

Company executives predicted a positive environment in its key markets during the current fiscal year as customers maintain high levels of capital expenditures. They said full-year sales should be CHF 600 million to CHF 640 million and profit margins should increase slightly.

Burckhardt said Hans Hess would leave its board in July. Hess became a director when Burckhardt Compression Holding AG went public and was the listed company’s first chairman until 2011.

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