State-owned Taiwan Tobacco and Liquor Corp (TTL, 台灣菸酒公司) is expected to set up a subsidiary in Xiamen, China, next year in a bid to expand sales of the company’s liquor products.
It would be first state-owned company to establish a subsidiary in China, TTL said. The subsidiary is expected to generate NT$80 million (US$2.63 million) in revenue next year and NT$400 million in 2013, a company official said on Thursday.
“The related budget was passed by the legislature on Tuesday,” TTL chairman Hsu An-hsuan (徐安旋) told a press conference. “Once the Ministry of Economic Affairs’ Investment Commission approves it, the subsidiary may begin operations formally in October next year.”
Hsu said the subsidiary would be a stepping-stone to the overseas market and he expects the subsidiary’s revenue to continue growing year by year.
However, the subsidiary’s main focus would still be liquor products, as China has import restrictions on tobacco products, he added.
TTL president Lin Tzann-feng (林讚峰) said the company’s liquor products have gained good publicity in southern China, making Xiamen an appropriate location for the company’s first subsidiary in China.
Revenue in China totaled NT$430 million in the first 11 months of this year, compared with NT$270 million for all of last year, the company’s data showed.
Overall revenue stood at NT$57.7 billion in the first 11 months this year, up 18.6 percent from the same period a year earlier, data showed.