Tong Yang Buys New Land in Taiwan for Capacity Expansion

Taipei, April 21, 2010 (CENS)--To tap increasing business opportunities created by the signing of the Economic Cooperation Framework Agreement (ECFA) between Taiwan and China, Tong Yang Group of Taiwan, the largest auto-parts conglomerate on the island, recently announced to expand production capacity.

Raymond Wu, Tong Yang's vice chairman, claimed that his group would further expand its aftermarket (AM) auto parts production on the island, planning to invest over US$62.7 million in global capacity expansion. Except for plastic bumpers, most of the group's products would continue to be produced in Taiwan.

According to Tong Yang, the ECFA is expected to eliminate the tariffs levied on auto parts supplied between Taiwan and China, so the group would further evaluate the advantages of global facilities to maximize production efficiency.

Tong Yang has been aggressively expanding its production capacity in China for more than 10 years, as well as starting an aggressive capacity expansion in Taiwan this year. About 50% of new capacity is expected to be added to Tong Yang Industrial Co., Ltd., the group flagship firm, this year, while new lines are expected to be completed at Taiwan Kai Yih Industrial Co., Ltd. to increase 75% new capacity after the third quarter to the sheet-metal body-parts affiliate.

Tong Yang recently bought over-2,000 ping (1 ping is 36 square feet or 3.3 square meters) of land near its global headquarter in Tainan in southern Taiwan and plans to continue to increase the newly purchased land by more than 10,000 pings. That, according to the group, is expected to support the continuous capacity expansion in the next three years.

Chris Wu said Tong Yang Industrial's production lines are filled with flooding orders to run round-the-clock six days per week.