Elevator Makers Yungtay and GFC See Rising Sales So Far

Taipei, Nov.28, 2012 (CENS)--Taiwan's major manufacturers of elevators and escalators Yungtay Engineering Co. and Golden Friends Corporation (GFC) are seeing rising sales this year over last year, due to Chinese government's promotion of building affordable apartments in Beijing. The two firms are optimistic about sales in 2013, with Yungtay predicting sales in China to grow more than 10% year on year (YoY).

Yungtay is estimated to land orders of 24,000 units in 2012, higher than previous expectation of 23,000 units; while GFC sold more than 600 units in the first 10 months, up 35% YoY.

Previously Yungtay and GFC cooperated technologically with Japanese firms Hitachi Ltd. and Toshiba Corp., respectively to enter the China market, but both partnerships broke afterwards to result in mixed performances there due to different branding strategies.

Yungtay saw revenues in the first 10 months up 6.65% YoY to NT$3.318 billion (US$110.6 million), with consolidated revenues growing 22.18% YoY to NT$15.772 billion (US$525.73 million). Despite traditional low season in the fourth quarter when snow in Beijing and Northeast China typically stop constructions, the firm's performance in the fourth quarter is expected to grow from 2011 but due to lower reference.

A manager of Yungtay noted that the firm landed orders of more than 20,000 units in China from Jan. to Oct., which is estimated to reach 24,000 units this year to exceed expectations, adding that sales growth in China in 2013 is predicted to remain only 10% YoY, due to relatively high comparison in 2012.

GFC saw sales in Shanghai rise 35% YoY to more than 600 units in the first 10 months, and targets selling 1,000 units annually with continuous growth in 2013.