Auto Lamp Maker Depo Ups Investments in Taiwan and China

Taipei, Feb. 21, 2012 (CENS)--Depo Auto Parts Ind. Co. Ltd., the largest auto-lamp manufacturer in Taiwan, recently announced to invest NT$3 billion (US$100 million) to expand production capacity in Taiwan, as well as planning to invest US$10 million set up a new factory in Danyang, Jiangsu Province, China (the second).

The new Danyang facility, according to Depo, will produce mainly aftermarket (AM) auto lamps for sale in China.

Depo's two factories in Taiwan, including one in central Taiwan's Lukang and another in southern Taiwan's Tainan, will be simultaneously expanded. The projects will soon start once land-acquisition problems are solved. The first-phase expansion will be completed within one to two years to meet strong global demand, the company said.

The maker said that the capacity expansion in both Taiwan and China is driven by increasing vehicle ownership globally, and that automakers are upgrading vehicle safety by installing ever more electronic systems, motivating auto-lamp makers to strengthen technical capability accordingly.

Depo operates several factories and joint ventures in China, including one in Danyang, a joint venture with Geely Automobile Holdings Ltd. in Ningbo, Jiangsu province, scheduled to start off mass production in the second half of 2012 to supply auto lamps to three Geely passenger-car models, and another plant in Hefei, Anhui Province to supply auto lamps to mainly Chinese automaker Jianghuai Automobile's truck and passenger cars initially, with annual shipments to be about 200,000 sets.

Depo said that its first factory in Danyang could no longer meet strong demand, so the company has bought 100 acres in the city to construct the second facility. Construction of the second Danyang plant is to kick off in the first half of 2012 and completes as early as the end of 2013. The first Danyang factory will produce auto-lamp parts for assembly in the second factory.