Tong Yang to Set Up 2 New Auto-Parts Plants in China

Taipei, June 29, 2010 (CENS)--Tong Yang Industrial Co., Ltd., a major auto-parts maker in Taiwan, recently claimed that it would set up two new plants in China, including one in Guangzhou of Guangdong Province (in partnership with FAW Group) and another in Changsha of Hunan Province (with Guangzhou Automobile Group).

Raymond Wu, president and general manager of Tong Yang, claimed that his group is ready for developing business in the booming Chinese automobile market.

With auto parts among the fast-tracked gainers for tariff cut or market opening after the cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA) will have been signed between Taiwan and China, Wu stressed that Tong Yang would accelerate its step to tap into the big aftermarket (AM) auto-parts market in China. Taiwan is expected to become Tong Yang's global production center of AM auto-parts products after the signing of ECFA, Wu said, so the group would expand such production capacity by 30% in this year on the island.

Tong Yang has been targeting at strengthening the profitability and expanding capacity of its deployments in China in recent years. This year, all of the group's production points in China are expected to be profitable. Through the tie-up with FAW Group, Tong Yang is expected to supply auto parts for Toyotas, Audis, Mazdas etc.

As the world's biggest car market, China has the top-10 auto-making groups setting up close cooperation with global partners, leaving little room for auto-parts makers to establish further partnerships there.

Tong Yang's new venture projects, industry sources said, implies the Taiwanese parts group's continuing business gains and its reputation in the huge market after long-term business development.

Currently, Tong Yang runs 16 production bases in China, including five coating , one tooling, nice plastic, and one sheet-metal parts plants.