Namchow Holdings Co Ltd (南僑投資控股), a producer of baking oil and frozen foods, is expanding capacity at its plant in Thailand, with expanded operations expected to start in the first quarter of next year and sales contributions beginning in the second, a company public relations official said yesterday.
Annual sales at the plant for next year are forecast to total more than NT$2.6 billion (US$83.63 million) and its contribution to overall sales is expected to reach 20 percent in two years, compared with 13.2 percent last year, they said.
The company would increase production of packaged foods and snacks in Thailand, where it does not face tariffs by China, they added.
“We have invested NT$1.22 billion to add production lines at the Thai plant,” the official, who asked not to be named, told the Taipei Times by telephone.
“Once we move in equipment later this year, we plan to start making baked rusks in the first quarter of next year and rice crackers for babies in the second quarter,” the official said, adding that the company would add production lines for adult food in the next three to five years.
China remains the largest market for Namchow, accounting for about 62 percent of its sales last year, followed by Taiwan at 24 percent, company data showed.
“The market for bread in China has shown steady growth this year, which benefits our baking oil business,” the official said, adding that sales of baking oil products are expected to continue to grow in the second half of this year.
The firm’s four plants in China have a utilization rate of about 80 percent this year, while utilization at its three plants in Taiwan has been steady, the official added.
Namchow on Monday reported that net profit in the first half of the year fell 13.97 percent year-on-year to NT$414 million due to higher business income taxes and foreign exchange losses.
Earnings per share fell from NT$1.94 to NT$1.67, while revenue edged down 0.71 percent to NT$8.87 billion, it said.
Namchow shares yesterday closed down 0.18 percent at NT$54 in Taipei trading.
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