Across The Border | Chinese high-end manufacturers start to reap the benefits of a stronger Japanese yen
Specialist firms able to produce quality products are hoping the currency’s growing image as a safe haven will continue
The appreciation of the Japanese yen is already benefiting some high-end Chinese manufacturers thanks to their pricing competitiveness over overseas rivals, and many are hoping the currency’s strength will continue for some time yet.
Haitian International, for instance, a plastic injection moulding machinery (PIMMs) maker, is one of those expected to enjoy the rewards.
Its PIMMs are used to produce new energy vehicles, home appliances, electronic products and medical equipments.
The company’s management told analysts at a recent meeting that it had already seen a sharp increase in orders in April, but they refused to say how directly that was being driven by the yen’s rise in value, Xiang said.
“Haitian is the only non-Japan manufacturer that can produce full-electric PIMMs in volume in Asia. It’s almost certain the company will benefit in the second half if the yen maintains its strength, ” said Sean Xiang, an analyst with Guotai Junan International.
“The company is now strengthening and promoting its full-electric PIMMs, and their selling price of is usually three times that of traditional machinery,” Xiang said.
