Mon, Feb 12, 2018 - Page 16 News List

Tong Yang expects harsh weather to boost demand

By Kuo Chia-erh  /  Staff reporter

Auto parts maker Tong Yang Industry Co (東陽實業) on Thursday gave a positive sales outlook for this quarter, saying that severe weather conditions in major markets are expected to boost customer demand for aftermarket (AM) car components.

Accidents are more likely on roads in North America and Europe because of heavy snowfall and stormy weather, a Tong Yang official said by telephone, adding that major clients would require the company to supply replacement parts for car repairs, which could lift its revenue for this quarter.

Tong Yang is the world’s largest supplier of AM automobile plastic components, with an almost 70 percent market share, company data showed. It is also a major supplier of original equipment manufacturing (OEM) auto parts to global automakers.

The company said its new AM product lines would this year focus on waterborne coatings, in a bid to reduce volatile organic compound emissions and meet higher environmental standards in Europe.

Revenue of AM products last month rose 3 percent year-on-year to NT$1.31 billion (US$44.5 million), while sales of OEM products jumped 40 percent to NT$909 million, Tong Yong said.

Overall, the company posted record-high revenue of NT$2.22 billion for last month, up 15.33 percent from NT$1.93 billion a year earlier.

Two other auto parts manufacturers last week also posted increases in revenue for last month, supported by robust demand.

Laster Tech Corp Ltd (麗清科技), the largest LED automotive lighting components supplier in China, said revenue soared 43.69 percent year-on-year to NT$484.54 million from NT$337.22 million.

Laster Tech said it is optimistic about its business outlook and expects LED automotive lighting penetration in China to increase to 60 percent in 2020, from nearly 15 percent in 2016.

Global PMX Co Ltd (智伸科), a provider of auto components for dual-clutch transmissions, reported sales last month grew 34.56 percent on an annual basis to NT$409.83 million from NT$304.57 billion.

The company attributed the increase to restocking demand and growing customer awareness of energy-efficient car components.

Despite Lunar New Year holiday disruptions, the company said it expects higher factory utilization this quarter.

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