Auto parts maker Tong Yang Industry Co (東陽實業) yesterday said that it would start shipping products to SAIC Motor Corp (上海汽車) in the fourth quarter of this year in a bid to expand its presence in China.
“The new orders would help cement Tong Yang’s position in China’s auto supply chain over the coming years,” a Tong Yang official said by telephone.
The official, who asked not to be named, said the firm has also secured large orders from other leading Chinese car brands, including FAW Group Corp (第一汽車) and Changan Automobile (長安汽車).
Tong Yang’s major Chinese clients command nearly 70 percent of the market in China, the firm said.
Revenue generated by Tong Yang’s original equipment manufacturing (OEM) business in China made up 26 percent of its total sales last year, up from 24 percent in 2015, company data showed.
In response to rapid growth in demand in the OEM segment, the Tainan-based company said that it has been working on several expansion projects in China.
Its has three new plants — in Guangdong Province, Changsha City and Chongqing City — that are to begin mass production by the end of this year, Tong Yang said.
The company is also building two new joint-venture factories in Qingdao City and Tianjin City to manufacture auto parts for FAW Group.
The two joint-venture facilities are to begin operations in the first half of next year, Tong Yang said.
The company, which entered the Chinese market in 1994, has 15 OEM plants and one factory for after-sales products in China.
Cumulative investments over the past two decades in China have totaled nearly US$153 million, the firm said.
The company yesterday reported that pre-tax profit last month rose 7 percent annually from NT$203 million (US$6.74 million) to a record NT$217 million on robust customer demand.
Aggregate pre-tax income in the first eight months of the year was NT$1.90 billion, or earnings per share of NT$3.09, flat from last year’s figure, the firm said in a statement.
From January through last month, cumulative revenue increased 4.89 percent to NT$2.05 billion from NT$1.95 billion a year earlier, data showed.
Tong Yang shares edged up 0.17 percent to close at NT$57.9 on the main board yesterday.
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