Shanghai, June 29 (Gasgoo.com) Tong Yang Industrial Co., Ltd., a major auto-parts maker in Taiwan, has announced its plans to set up two new plants in mainland China, one in Guangzhou of Guangdong province and another in Changsha of Hunan province, the Taiwan Economic News reported today.
The Taiwan auto-parts maker's Guangzhou plant will be built in partnership with FAW Group, whose joint venture FAW-Volkswagen has started setting up a plant in Foshan of Guangzhou for southern expansion, and the Changsha plant will be built with Guangzhou Automobile Group, whose new venture with Fiat will produce vehicle there.
With auto parts among the main beneficiaries of tariff cut and market opening after the cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA) was signed today between Taiwan and mainland China, Tong Yang would accelerate its step to tap into the big aftermarket auto-parts market in the world's largest auto market.
Tong Yang has been seeking profitability and expanding capacity of its operations in the mainland in recent years. Through the tie-up with FAW Group, Tong Yang is expected to supply auto parts for Toyota, Audi, Mazda and other global auto brands.
Taiwan is expected to become Tong Yang's global production center of aftermarket auto-parts products after the signing of ECFA, so the group would expand such production capacity by 30% this year on the island.
Currently, Tong Yang runs 16 production bases in mainland China, including five coating plants, one tooling plants, nine plastic plants, and one sheet-metal parts plant.
