Cleantech Solutions International, Inc. (CLNT) specialising in metal components and assemblies used in various clean technology and manufacturing industries and textile dyeing and finishing machines, has announced that it has received approval for an investment of RMB10,000,000 (approximately $1,623,693) from its Chairman for funding expansion of the company’s dyeing machine business.
“This investment in Cleantech Solutions reflects my commitment to the company and enthusiasm for its future. We believe that the Chinese Government’s announced aggressive stance on pollution control is encouraging textile manufacturers to upgrade their equipment to more environmentally friendly models. We continue to see strong order flow for our low emission airflow dyeing machines and are expanding capacity to meet the anticipated demand,” said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.
Sharing the company’s performance in the first quarter of 2014, he said: “We began the year on solid footing, generating profitable growth and strong operating cash flow. Our dyeing machine segment continues to see strong momentum as an increasing number of textile manufacturers are purchasing our low-emission airflow dyeing machines and other equipment in view of the Chinese Government’s more aggressive pollution control requirements in the dyeing industry. In our forged products business, sales to customers in the wind power industry were relatively flat as we shifted our focus to customers in industries with more favorable growth dynamics. We continue to increase capacity of our dyeing equipment segment and introduce new products to help drive future growth.”
Revenue for the first quarter of 2014 increased 27 per cent to $17.6 million compared to $13.9 million for the same period of 2013.
Revenue growth was primarily driven by sales of dyeing and finishing equipment due to demand for the company’s low-emission airflow dyeing machines, which enable manufacturers to meet China’s stricter environmental standards. In addition, the company registered a strong increase in sales of forged products from customers in industries other than wind power.
Business outlook
“Looking ahead, we hold a positive outlook for our business for the rest of the year. We expect environmental factors in China to continue to drive textile manufacturers to replace old and inefficient equipment with more environmentally friendly models. We continue to see strong order flow for our low emission airflow dyeing machines and after-treatment compacting machines, and we are currently developing a new garment washing machine for denim. We plan to gradually increase production capacity in our dyeing machine segment to meet demand.”
“The company intends to devote a greater marketing effort for sales of forged products to customers in heavy equipment industries, putting less emphasis on the wind power industry. We remain optimistic that we will generate sales from our products for the oil and gas industry in 2014, although we have not received any orders to date and we cannot predict the size or timing of any sales or whether we will receive orders,” Mr. Wu concluded.