FAW-VW Asks Tong Yang to Set Up Plastic Parts Plant in Foshan

Taipei, June 24, 2011 (CENS)--Tong Yang Industrial Co., Ltd., a leading auto-parts conglomerate in Taiwan, recently announced an invitation from China's FAW Group to set up a plastic body parts plant in Foshan, Guangdong Province.

FAW-VW Automobile Co., Ltd. will set up a new auto plant with targeted annual capacity of about 300,000 new cars. Tong Yang's other subsidiary, Changchun Fawer Tong Yang Plastics Co. Ltd. (FATY) in Changchun, Jilin Province, already supplies parts to FAW-VW's plant in Changchun, and the proposed parts plant in Foshan will duplicate the model to further drive Tong Yang's operation in China.

Raymond Wu said that the capacity-expansions at Tong Yang's Tainan plants in southern Taiwan will be completed in August, adding some 23% capacity for plastic body-parts production and 75% for sheet-metal, with the post-expansion capacity of sheet-metal body-parts to almost equal that of Taiwan's total annual exports.

After Tong Yang's shareholders meeting, at which the company announced to distribute NT$1.1 (US$0.04) in dividend for 2010, Wu said the expansions will result in annual capacity of 6.96 million plastic bumpers and about 4.2 million sheet-metal body parts.

Tong Yang has announced to set up a parts factory in Changsha, Hunan Province with Chinese automaker Guangzhou Automobile Industry Group Co., with the new venture expected to win OE (original equipment) parts orders from Guangzhou Automobile Mitsubishi.