Hota Industrial Manufacturing Co (和大工業), which makes gears and shafts for automobiles, motorcycles and tractors, yesterday said that it aims to increase revenue by 23 percent this year based on strong global growth in the car industry.
The company expects sales to rise to NT$4.6 billion (US$153 million) this year, from last year’s NT$3.73 billion.
“The market sentiment for car industry in the US, China, South Korea and Japan is rising, and the situation in Europe also started improving from the second half of last year,” Hota chairman and chief executive officer David Shen (沈國榮) told reporters.
The company said it has received orders of NT$100 million from new France-based client AGCO Corp this year to ship 4,000 gear units for the world’s third-biggest selling tractor.
AGCO is planning to increase orders to NT$375 million next year and to NT$625 million in 2016, Hota said.
Orders from US-based BorgWarner Inc, the company’s largest client, are set to increase to NT$1.25 billion this year, from NT$900 million last year, after Hota received notification from Borg Warner that its customer, Toyota Motor Co, wanted to start receiving parts, the company said.
Hota started shipping 9,000 torque converter units a month to BorgWarner last month. After the assembly process, BorgWarner sells the end products to Toyota, it said.
The record NT$3.73 billion revenue posted by the company last year is 84.65 percent higher than the NT$2.02 billion revenue it reported in 2012, according to the company.
“Because of the company’s growth, we have promised to raise our employees’ salaries by about 5 percent next year,” Shen said, adding that this would be the fourth consecutive year that the company has raised its employees’ salaries.