Yeong Guan Energy Technology Group Co (YGG, 永冠能源), one of the nation’s leading advanced casting components suppliers, on Monday said its new factory in Taichung would begin production next year as scheduled.
YGG, headquartered in China’s Zhejiang Province, provides casting components for specialized applications, mainly in the fields of energy, industrial machinery, medical equipment and injection molding.
After overcoming some hurdles, the new plant is set to finally start operations next year. Construction work was almost delayed, as the company was forced to relocate the plant to an industrial area after the initially planned land in the electricity zone of the Port of Taichung (台中港) was taken back by the city government for other use.
The factory is to produce offshore wind turbine casting components, YGG said in a statement.
The casting components manufacturer reported second-quarter net profit of NT$324 million (US$10.1 million), or NT$2.77 per share, according to the statement.
First-half net profit expanded 15.2 percent to NT$623 million, compared with NT$541 million in the same period last year, the statement said.
However, revenue dropped 3.4 percent to NT$3.91 billion, from NT$4.5 billion a year ago, it added.
Shipments in the first two quarters rose 2.8 percent year-on-year to 77,000 tonnes, company data showed.
Asked about its outlook for the second half, YGG said it expects shipments to drop in the current quarter, as customers, mostly wind power turbine maker, are entering a period of inventory adjustment.
For the full year, YGG plans to ship 152,000 tonnes of goods, a flat forecast compared with shipments last year, it said.
The firm plans to raise the revenue contribution of its wind power business from last year’s 59 percent to 70 percent this year, given increasing demand for components used in wind turbines, YGG told investors in April.
Larger offshore wind turbines are to be the next focus products, the company said, adding that wind turbines with a capacity of more than 6 megawatts are expected to be YGG’s new growth driver next year in terms of shipments and revenue.
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