Auto parts maker Tong Yang Industry Co (東陽實業) is planning to expand capacity at its Chinese plants to cope with robust demand from the Chinese market, a company official said yesterday.
The company supplies car components for global automotive brands via original-equipment manufacturing (OEM), or the aftermarket (AM) channel. Tong Yang operates 16 factories in China to supply OEM car components for Chinese automakers.
Tong Yang said it is optimistic about demand from China.
“The company plans to boost capacity at a plant in Foshan in Guangdong Province, and expects to complete the expansion in the first quarter of next year,” a Tong Yang official said by telephone.
The Foshan plant manufactures dashboards for major Chinese automakers, including Dongfeng Motor Corp (東風汽車) and Guangzhou Automobile Group Co (廣州汽車集團).
The plant can produce 250,000 dashboards a year.
The company is also planning to build new production lines to make higher-end auto parts, targeting the European market, the official said.
Tong Yang is building new production lines with trivalent chromium and satin nickel plating capability at its plant in Xiangyang, Hubei Province, which is expected to start production early next year.
By using an environmentally friendly plating processes, the company expects that its products can meet the EU’s requirements, the official said.
As for the AM business in China, the company said it has obtained certification for its post-sales automotive components from Ping An Insurance (Group) Co (平安產險), China’s second-largest property insurance company.
To win more orders from Chinese insurers, the company said it is developing a new series of AM products with diversified features.
Tong Yang yesterday reported pre-tax profit of NT$203 million (US$6.45 million) for last month, up 27 percent from the previous year.
In the first eight months of this year, the company saw its pre-tax net profit surge 76 percent to NT$1.9 billion or NT$3.07 earnings per share, compared with the same period last year, company data showed.
Tong Yang shares gained 6.6 percent to close at NT$69.4 in Taipei trading yesterday, outperforming the benchmark TAIEX, which rose 2.81 percent to 9,152.88 points.
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