Precision gear maker Khgears International Ltd (鈞興) on Wednesday last week said it would set up a plant in Taiwan this year to focus mainly on harmonic gear drives, as it aims to meet rising demand from the electric bike and industrial robot sectors.
The firm, incorporated in the Cayman Islands, said that it intends to make Taiwan its second major production base after China, but higher land costs in industrial zones and difficulty in recruiting workers for night shifts mean that it needs more time to consider relocating production.
Still, the company plans to construct another plant and build a research and development center in the next two years, it said.
In China, Khgears is building two plants in Zhuhai in China’s Guangdong Province for 15 million yuan (US$2.14 million), which are expected to be completed before September next year.
The plants would produce gears for industrial robots and alternative-fuel vehicles, as well as harmonic gear drives and other high-end smart transmission gears, the firm told a pre-listing conference in Taipei.
Khgears plans to debut its shares on the Taiwan Stock Exchange later next month, with an initial public offering price (IPO) of about NT$70.
The firm is to become the first foreign-registered company to conduct an IPO on the local main bourse this year.
Khgears, established in January 2003, is the world’s largest supplier of high-end small and medium bevel gears.
Bevel gears, the gears where two shafts intersect, remained the company’s main product last year, accounting for 38 percent of total sales, it said, adding that other products include straight gears, powder metallurgical gears and gearboxes.
The company’s clients are mostly first-tier vendors in the fields of electric and garden tools, industrial robots and automobiles, Khgears president and spokesman David Du (杜春輝) said at the conference.
Khgears said that net income for the first half of this year jumped 39.46 percent annually to NT$116.43 million (US$3.71 million), or earnings per share of NT$2.77, while revenue increased 5.89 percent to NT$801.97 million.
The company’s revenue is expected to grow 5 to 10 percent this year, from last year’s NT$1.57 billion, analysts said.
Its full-year revenue split is likely to be 45-55 for the first and second halves, because the July-to-September period is the peak season for electric tools, boosting second-half sales, they said.
‘OUT IN FRONT’: The new investment is part of MediaTek’s bid to expand revenue by 15 percent over the next three years from an estimated US$17 billion this year MediaTek Inc (聯發科) is to continue investing in the development of low-power technologies to maintain its leading position in the industry over the next 10 years, the Hsinchu-based chip designer said yesterday. This year, it would allocate US$3.3 billion to the research and development of technologies related to high-performance computing, low power and advanced chip packaging, MediaTek said. The investment is part of the chip designer’s efforts to enhance its technological capabilities and boost revenue. MediaTek aims to expand revenue by about 15 percent over the next three years from an estimated US$17 billion this year. “We are definitely out in front of
PharmaEssentia Corp (藥華醫藥) shares have jumped 80.56 percent since the company obtained a US polycythemia vera (PV) drug license for its new interferon drug Besremi (ropeginterferon alfa-2b-njft) on Nov. 12. Shares on Friday closed at NT$195 in Taipei trading, up from the stock’s closing price of NT$108 on Nov. 12. PV is a rare, chronic and life-threatening blood cancer linked to a stem cell mutation in the bone marrow that results in an overproduction of blood cells and places sufferers at risk of having a blood clot, stroke or heart attack. PharmaEssentia is preparing to make Besremi available in the US in the
The US$410 DeliSofter pot looks much like the rice cookers ubiquitous in Japanese households and it does prepare rice in 24 minutes. However, this invention of two Panasonic Corp engineers is designed to do more and help people with swallowing difficulties. The two women led the creation of a spin-off company, Gifmo Co, to sell the specialized steam cooker, which they say can turn fried chicken soft enough to be sliced with a potato chip. The machine works by first cutting into food with a series of blades and then subjecting it to extremely high pressure at a temperature of 120°C,
Industrial metals plunged and gold rallied as the emergence of a fast-spreading and highly mutated SARS-CoV-2 strain sparked a sell-off across financial markets. Base metals, including copper and aluminum, fell more than 3 percent in London as investors weighed the risk that the new variant identified in South Africa might spur fresh outbreaks and derail growth in the world’s leading industrial economies. Scientists say it carries a high number of mutations that could make it more effective at evading existing vaccines. The new strain creates fresh risks to the outlook for metals demand, imperiling a recent rebound in prices driven by chronic