China Economic News Service - Thanks to stable sales growth in both original equipment (OE) and aftermarket (AM), Tong Yang Group, the largest auto-parts conglomerate in Taiwan, expects revenue to grow 10% to 15% this year to about NT$40 billion (about US$1.33 billion).
Raymond Wu, the president, says that OE-parts sales in Taiwan are expected to grow 5% to 8% this year, while sales of AM products will grow steadily worldwide, stressing that booming new-car sales in China will drive Tong Yang`s strong growth of OE-parts business there over the next five to 10 years, so will set up an OE parts headquarter in China.
Tong Yang has reported new projects this year in China, including a joint-venture with Guangzhou Automobile Industry Group Co., Ltd. (GAIG) in Changsha of Hunan Province, as well as new orders from Changan Mazda and Dongfeng Yulon Motor (a joint venture between Taiwan`s Yulon Group and China`s third-largest automaker Dongfeng). In addition, the Changchun Fawer Tong Yang Plastics Co. Ltd. (FATY) set up with China's FAW Group in Changchun, Jilin Province, is expected to win more OE orders from the FAW Group.
Simon Chen, head of Tong Yang`s AM parts business group, says that Tong Yang has been aggressively diversifying product lines to provide "one-stop-sourcing" to global customers.
Tong Yang is very optimistic about sales in China after the Economic Cooperation Framework Agreement (ECFA) has become effective to reduce or eliminate duties on automotive products shipped between China and Taiwan.
Institutional investors estimate that Tong Yang Group will challenge consolidated revenue of about NT$40 billion (US$1.33 billion) this year, up 10% to 15% from 2010.
