Thu, Jul 25, 2019 - Page 12 News List

Tex Year to double glue capacity amid demand

DOMINO EFFECT:The US-China trade row lowered electronics imported from China to the US, which led to lower sales of the firm’s special chemical products

By Kwan Shin-han  /  Staff reporter

Adhesives maker Tex Year Industries Inc (德淵企業) yesterday said that new manufacturing facilities at its plant in Taoyuan’s Guanyin District (觀音) would help double its annual hot melt glue stick capacity to 14,000 units, adding that it expects overseas orders to gradually increase later this year.

“We expect demand from Europe, which has shown the fastest growth so far this year, to keep growing in the second half,” a company public relations official told the Taipei Times by telephone.

Hot melt glue sticks, used in furniture assembly and household sanitary products, accounted for about 20 percent of Tex Year’s sales in the first half of this year, the official said, adding that other hot melt adhesive products made up about 60 percent.

The new facilities, which cost the company NT$300 million (US$9.65 million), are equipped with the world’s most advanced automated production lines for hot melt glue sticks, the company said.

China contributed about half of the company’s sales in the first six months, compared with Europe’s 7.5 percent, Taiwan’s 6.5 percent and the US’ 5.5 percent, company data showed.

“Contribution from China declined by 5 percentage points from the same period last year, as the US-China trade dispute lowered electronics imported from China to the US, which led to lower sales of our special chemical products,” said the official, who declined to be named.

Special chemicals made up about 12 percent of the company’s total sales in the first half, he said.

Tex Year reported that net profit jumped 249.02 percent annually to NT$27.83 million in the first half, while earnings per share rose from NT$0.09 to NT$0.31. Revenue increased 2.35 percent annually to NT$1.57 billion.

The company expects more sales contribution from its ultraviolet curing adhesive, one of its special chemical products, later this year, as the item can be applied to electronics, flat panels, composite materials and other new products, the official said.

Tex Year shares yesterday closed up 0.37 percent at NT$13.6 in Taipei trading.

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