 2012-04-11 |
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Reported by Chou Yi-Lang, Taipei
On April 10, Li Zhi-Xian, President of YC Group, announced that YC and its subsidiary, ACHEM, will expand their production capacity in both upstream and downstream tape sectors by 20% over the next two years. The goal is to become the global leader in the tape industry within five years.
Li stated that while the tape industry is mature, it is less affected by global economic fluctuations. To achieve the goal of becoming the world’s largest tape manufacturer in five years, YC and ACHEM will undertake significant expansion efforts starting this year. The combined capital expenditure for the two companies will exceed NT$2.3 billion this year. Additionally, their investment in Xinzhou Global, their distribution channel, will increase the total number of stores in both Taiwan and China to 55 by the end of the year.
In December last year, YC’s Changbin plant in Taiwan commissioned a new production line for BOPP (Biaxially Oriented Polypropylene) film, with a monthly capacity of 3,000 tons. This is one of the raw materials for tape. The total monthly capacity in Taiwan and China has increased from 10,000 tons in 2010 to 13,000 tons, a rise of approximately 30%. To meet demand from clients such as 3M, YC is planning to invest in a seventh film production line, expected to be operational by mid-next year.
ACHEM is also expanding in response to domestic market demand in China. It has acquired land in Dongguan to build new PVC tape production lines and will add PVC machinery in Shanghai, with production expected to start in the second half of the year. ACHEM estimates that its capital expenditure in Taiwan and China will exceed NT$2 billion this year.
Last March, YC Group acquired a 40% stake in Tianchi Technology, with ACHEM holding 19%. Li Zhi-Xian noted that Tianchi Technology will develop cloud services and connect with Xinzhou Global’s packaging distribution channel, "Bao Dashi." Xinzhou Global aims to expand its locations to 55 by the end of this year, with a target of 350 locations by 2015, including 300 in China and 50 in Taiwan.
Li emphasized that "Bao Dashi" added 20 new stores last year, and plans to open 10 more in Taiwan and 25 in China this year, aiming for one store in every industrial zone. The company aims to turn a profit this year after breaking even last year.
Regarding Wangzhou Construction, its largest project, Yunpin, was sold out last year. This year, Wangzhou will launch its largest project to date, "Fengzhi Tree," with a sales value of NT$5 billion in the first half of the year. |
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