Thu, Jun 06, 2019 - Page 11 News List

CFTC shipments to Tesla to grow

By Kwan Shin-han  /  Staff reporter

Automotive parts supplier China Fineblanking Technology Co Ltd (CFTC, 和勤精機) expects rising shipments to Tesla Inc in the second half of this year as the US electric vehicle maker ramps up production for its Model 3 in Shanghai, a company official said yesterday.

The company provides electrical equipment bases and related components for Tesla’s Model 3, said the official, who asked to remain anonymous.

Tesla’s Shanghai unit is expected to reach an annual output of 50,000 vehicles in two to three years, which would contribute to CFTC’s sales in upcoming quarters, the official said, declining to offer exact numbers.

In addition, the company expects to produce about 10 million track pads for China’s high-speed railways and process products for Miba Precision Components China Co Ltd (米巴精密零部件), they said.

A sluggish Chinese auto market has a limited effect on CFTC, as it has a broad customer base and orders from certain clients have increased, including Tesla, the official added.

“However, our hard disk drive parts business might decline this year due to growth in cloud storage services,” she said, adding that the hard disk drive parts business has been slowing since last year.

Automotive parts last month contributed NT$113 million (US$3.6 million), or 57.52 percent, of total sales, while hard disk drive components accounted for NT$69 million, or 34.94 percent, company data showed.

The company reported net losses of NT$34.05 million for the first quarter, or losses per share of NT$0.46, compared with a net profit of NT$15.15 million a year earlier.

CFTC shares yesterday rose 0.29 percent to NT$34.9 in Taipei trading.

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