August 12, 2016 Updated 8/12/2016
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Tech-Long Packaging Machinery Co. Ltd. plans to establish a subsidiary in Austria, but that’s not all that has happened to the company since its high profile debut at NPE last year.
The Guangzhou, China-based equipment maker announced this week that it’s investing 1 million euros ($ 1.12 million) to set up a wholly owned subsidiary in Vienna, in a bid to increase its brand awareness and market penetration in Europe. The move is expected to “enhance its overseas market structure and boost its influence in the global market,” the company said.
Tech-Long moved and expanded its North American headquarters to Atlanta last year after a high profile debut at NPE. The company invested $ 5 million on a new parts and service center and plans to expand into manufacturing.
Back home, however, Tech-Long has seen a slew of changes including the departure of its founder and chairman in July.
In May 2016, the publicly listed firm announced a 2.5 billion yuan ($ 376 million) cash bid to acquire a mobile internet firm New Born Town Network Technology Co. Ltd. of Beijing. Tech-Long said the deal would enable it to push for a dual-core-business operational model that bridges traditional industrial manufacturing with the latest internet technology.
The deal fell through in July, due to “significant changes in the market environment and policies.”
Earlier this week, Tech-Long revealed its first-half financial reports, showing a net loss of 14.4 million yuan ($ 2.17 million), compared to 6.4 million yuan ($ 964,000) of net profit in the first half of 2015.
The company cited rising costs of materials and labor, falling demand in the beverage market, and intensifying competition as the causes of its declining profitability. Sales during the first six months reached 407 million yuan ($ 61.4 million).
