Tong Yang to Raise 56% Plastic, 75% Sheet-metal Production Capacity

Taipei, Sept. 6, 2010 (CENS)--The Tong Yang Group is expected to smoothly achieve a 10% annual revenue growth this year, claimed vice chairman and president Raymond Wu before the merger between the group flagship firm Tong Yang Industrial Co., Ltd. and affiliate Taiwan Kai Yih Industrial Co., Ltd. on September 1.

Tong Yang is the world's largest maker of aftermarket (AM) plastic body-parts, and an original equipment (OE) plastic parts supplier to many automakers in Taiwan, China and other nations. Before the merger, Taiwan Kai Yih is a leading sheet-metal body parts supplier to both the AM and OE markets.

Wu claimed that after several capacity-expansions at different group affiliates, Tong Yang's annual capacity for plastic parts will reach 9.43 million plastic bumpers (up 56%) and 4.2 million sheet-metal parts (up 75%). The group anticipates more business opportunities to be generated by the recent signing of the Economic Cooperation Framework Agreement (ECFA) between Taiwan and China, Wu added.

According to the vice chairman and president, Tong Yang's production lines are round-the-clock to meet strong worldwide demand. The group began planning to expand its global production capacity two years ago, he added.

Wu pointed out that Tong Yang's operation is expected to peak in the fourth quarter, the tradition high season for AM auto-parts business, with the newly expanded capacities join overall production in September and October.

In addition to the ECFA effect of lowered duties, Wu said, some other favorable conditions are expected to help Tong Yang to grow rapidly in the second half, including stabilizing steel prices, slow down in foreign-currency rate, and newly added capacities.

More importantly, Wu stressed,, his group's reinvested subsidiaries and joint ventures in China together registered a 68% year-on-year (YoY) revenue increase in the first seven months this year.