Automotive lighting products producer TYC Brother Industrial Co (堤維西) said it is upbeat about its business outlook this year, given steady progress at its new factory in Chongqing, China, and growing reflex reflector electroform business in that market.
The new factory, owned by TYC’s Chinese subsidiary, Varroc TYC Auto Lamps Co (大茂偉瑞柯), is expected to increase its revenue by about 11 percent this year to 1 billion yuan (US$162.6 million) from last year’s 900 million yuan, TYC chairman Wu Chun-chi (吳俊佶) said earlier this week.
TYC holds a 50 percent stake in Varroc TYC, which swung to the black about three years ago.
The Chongqing factory was established to supply lighting products for Ford Motor Co’s Focus and Mondeo sedans in China, while help save transportation costs for Varroc TYC because of its proximity to Ford’s production sites in the country, Wu said.
NEW RULES FOR TRUCKS
Meanwhile, DBM Reflex of Taiwan Co (迪比恩), in which TYC also owns a 50 percent stake, will start to sell its reflex reflector electroform products in China by the end of this year, after Beijing implements a new rule requiring all trucks to have reflex reflector electroforms on their exterior for safety reasons starting next quarter.
BIG MARKET
Wu said there are about 30 million trucks in China, with 3 million new trucks sold in the market every year.
A truck in China will need to have between 40 pieces and 80 pieces of reflex reflector electroform based on the new rules, Wu said.
DBM Reflex is likely to be the first company in China to have all the required certifications for its product, he said.
TYC manufactures automobile lamps in the industry’s after-market segment and is expanding its presence in the original equipment manufacturing (OEM) segment, with clients including BMW AG and Osram GmbH.
In June, Wu said TYC expected to increase sales in the OEM market to NT$200 million a year within the next three years from the current NT$150 million a year.
From January through last month, TYC reported revenue of NT$10.75 billion (US$359.99 million), up 15.87 percent from NT$9.28 billion the previous year, according to the company’s filing to the Taiwan Stock Exchange.
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