Japanese Carmakers to Fuel Actron Technology's Sales After 2012

Taipei, Jan. 5, 2011 (CENS)--Actron Technology Corporation of Taiwan, one of world's leading automotive diode manufacturers, recently claimed that its sales are expected to grow at least in 2011 due to strong demand from China.

In addition, said M.K. Lu, chairman of Actron, more and more Japanese automakers are turning to Actron for cooperation, which is expected to fuel Actron's sales considerably for at least two years after 2012.

The strong Japanese yen against the greenback is irreversible, Lu said, and some automakers in Japan, including Toyota, have contacted Actron, expressing willingness to adopt Taiwan-made parts to cut costs.

Toyota has commissioned an automotive alternator maker in Japan to accept Actron's product samples, Lu said, and Toyota will immediately adopt Actron's parts when samples are certified. The Alternator maker currently directly supplies products to the top-three Japanese automakers (Toyota, Honda and Nissan), the chairman added, and Actron is expected to begin supplying diodes to the three major auto brands in 2012.

China accounts for about 40% of Actron's overall sales. Lu said that some 18 million new cars were sold in China in 2010, and the volume is expected to continue to grow 15% to 20% to more than 20 million units in 2011, which will drive Actron's sales.

Some institutional investors said that on many new cars, the demand for diodes has doubled to reach 12 units, suggesting an expanding market.

Lu is also the chairman of Right Way Industrial Co., Ltd., a major original equipment (OE) engine-piston supplier to most local auto and powered two-wheeler (PTW) makers.

According to Lu, Right Way's die-casting techniques can help Actron to apply products to finished products as ABS brake system, alternators etc.

Actron supplies mainly press-fit diodes, dish diodes, block diodes, and other packaging diodes for the application in the alternator.