Taipei, May 15, 2012 (CENS)--Actively expanding its output, the Taiwan-based Tong Yang Industry Co., Ltd., the largest supplier of car body parts on the island by production and sales value, is expected to gain stronger growth momentum in sales performance in the second half of this year than in the first half.
Mainly affected by growth slowdowns of the North American and European markets for auto parts, Tong Yang has seen sluggish revenues so far this year, with its aggregate revenue for the first fourth months of the year slightly sliding by 1% from a year earlier to NT$4.137 billion. Meanwhile, the company's sales revenue for April also edged up only 0.5% to NT$1.029 billion from NT$1.024 billion a year ago.
However, the sluggishness is likely to be reversed in the second half of this year, as the company will move to set up new production lines during the span. For example, the manufacturer has decided to spend NT$180 million phasing in painting equipment to its factory in northern Taiwan.
Furthermore, the company will also gain steam from its joint venture with Guangzhou Automobile, which, located in Hunan Province, northern China, will start mass production in July.
Additionally, Tong Yang's reinvested company, founded in Hubei Province, northern China early this year to handle production of electroplated auto parts, is scheduled to be operational in the third quarter of 2013 with annual output of up to 450,000 units, and will be set to supply to local carmakers, including Dongfeng Nissan, a joint venture between Guangzhou Automobile and Mitsubishi motor, and Zhengzhou Nissan. This will hopefully help to inject growth momentum to Tong Yang's operating performance in the years to come.
(by Steve Chuang)