Tong Yang's revenue hit new high for 20th straight month in February

Taipei, March 15, 2004 (CENS)--Taiwan's Tong Yang Industrial Co., Ltd., the island's largest plastic body-parts maker, saw its revenue hit new monthly record for the 20th straight month in February due to the strong demand from big customers in major markets such as the U.S. and Europe.

Tong Yang claimed that it plans to invest about NT$1 billion (US$30.03 million at US$1: NT$33.3) to expand a dashboard and an electro deposition plating (EDP) production line at its plant in southern Taiwan's Tainan this year. In mainland China, the Taiwan company would further expand its capacities by setting up at least two new plants, including one in northern China and another in central China.

Tong Yang had pretax earnings of NT$108 million (US$3.24 million) in February, up 75.06% from the same month of last year; and its combined pretax earnings for the first two months was NT$184 million (US$5.53 million), up 39.39% from the same period of last year. In the first two months, Tong Yang's accumulated earnings per share (EPS) was NT$0.47 (US$0.01).

Tong Yang president Raymond Wu attributed the strong demand last month to the bad weather in the U.S. and Europe, which led to more car collisions. In addition, the demands from different markets grew by over 30% last month too.

Wu claimed that his company would adjust its product marketing strategies this year by concentrating more on product diversification and accelerating product development. The company is actively trying to further upgrade its profit margins by tapping the car-modification body parts market with two new brands of such items, including X-Klusive and Diamond Q.

According to Wu, the new dashboard and EDP lines are scheduled to begin mass production in the second half this year and bring lucrative incomes in the future.

In mainland China, three of Tong Yang's plants there will soon kick off second- or third-stage capacity-expansion projects, including Chongqing Dajiang Yuchyang Plastic Co., Ltd., Fuzhou Tong Yang Plastic Co., Ltd., and Nanjing Tong Yang Plastic Co., Ltd. Another two new plants, including Changchun FAWER Tong Yang Plastic Co. Ltd. And Harbin Hafei Tong Yang Plastic Co., Ltd., will start mass production in the first half, Wu added.

Tong Yang plans to also set up several plastic parts, coating material and mold/die development plants in Beijing, Tianjin and Wuhan (Hubei Province), mainland China this year to make its cross-strait business deployment more comprehensive.

In addition, Tong Yang also plans to further expand the capacities at its existing plants in Thailand and Europe (Italy) this year.