Tue, Apr 23, 2019 - Page 12 News List

Global Tek positive over outlook due to steady demand

By Kwan Shin-han  /  Staff reporter

Global Tek Fabrication Co Ltd (時碩工業), a precision machine maker, has a positive outlook on business this year, due to steady demand in the aviation and automobile industries, the company said yesterday.

Global Tek makes jack heads for thrust reversal and linear control systems for Boeing Co’s 787 Dreamliners, while its oil and heat exchange system for Leap engines are installed on Airbus SE A320neos and Commercial Aircraft Corp of China’s (COMAC, 中國商用飛機) C919 jetliners.

Global Tek’s revenue last year was NT$3.43 billion (US$111.2 million), compared with NT$3.34 billion a year earlier, with parts for powertrains and safety systems contributing 39 percent and 24 percent respectively, company data showed.

Components used in the oil refining, wafer and bicycle industries made up 25 percent of overall revenue last year, while aviation components contributed 12 percent, the data showed.

It expects the global automobile industry to be flat this year, but rising demand for alternative-fuel vehicles would boost sales of its powertrains, it said.

Global Tek bought a 70 percent stake in Allied Advantage Sdn Bhd in November last year for about NT$179.07 million.

“This deal improves our manufacturing ability in forging and stamping. Most importantly, it helps us to enter ASEAN markets while solving the worker shortage problem in China,” Global Tek accounting manager Alan Lin (林劭穎) said at an intelligent manufacturing meeting organized by the Taiwan Stock Exchange Corp.

Global Tek chairman Huang Ya-hsing (黃亞興) said that Malaysia-based Allied Advantage would have give it an advantage in exporting car stereos to the US and Europe, due to lower tariffs the nation faces.

At home, the company would continue to invest and boost headcount at the Central Taiwan Science Park (中部科學園區), Huang said.

Global Tek has more than 900 workers in Taiwan and China. The company operates a factory in Taiwan that accounted for 46 percent of last year’s total revenue. It runs two factories in China.

Global Tek reported earnings per share of NT$3.24 for last year, down from NT$3.29 a year earlier.

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