Tong Yang's Chinese Operation Enters 2nd Stage Expansion

Taipei, July 26, 2012 (CENS)--Tong Yang Industrial Co., Ltd., a major original equipment (OE) and aftermarket (AM) auto-parts manufacturer in Taiwan, recently said its joint venture in with Chinese automaker Guangzhou Automobile Industry Group Co., Ltd. (GAIG) in Changsha, Hunan Province has started production early this month to supply plastic parts as bumpers and instrument panels for locally assembled Mitsubishis and Fiats, with annual capacity being 400,000 sets, and the second-stage capacity-expansion plan expected to add 200,000-600,000 sets per year.

Tong Yang claims GAIG is the sixth-largest carmaker in China, and the GAIG-Tong Yang venture would soon become a major parts supplier to GAIG's factory in Hunan Province, with the new venture expected to further boost Tong Yang's revenue from China to realize the “second-stage explosive revenue growth” for Tong Yang's operations in China.

By the end of the third quarter of 2013, Tong Yang said, two new factories in China producing OE (original equipment) auto parts will be inaugurated in Foshan (Guangdong Province) and Xiangyang (Hubei Province) to begin mass production to supply first-class automakers as FAW, Dongfeng-Nissan, GAIG etc.

GAIG has set up two new auto production ventures with international automakers, including the GAIG-Fiat (started mass production in July) and GAIG-Mitsubishi. GAIG-Tong Yang in Changsha supplies plastic parts to GAIG-Fiat's CM343, and has won a five-year order for 720,000 parts.

GAIG-Mitsubishi is scheduled to begin production by 2013, with GAIG-Tong Yang to supply bumpers, instrument panels and exterior decorative items to GAIG-Mitsubishi's first car (dubbed RVR in Japan or ASR elsewhere).

Tong Yang began setting up business in China over 10 years ago, running 17 plants (many being JVs with automakers) there, achieving almost doubling of consolidated revenues in a decade driven by rapid market growth in China.