 2012-04-10 |
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Reported by Chen Li-Wen, Taipei
Li Zhi-Xian, Chairman of YC Group, stated that the group is focused on vertical integration of the upstream and downstream sectors. YC will handle raw materials, ACHEM will focus on tape production, and "Bao Dashi" will specialize in distribution. Benefiting from rising raw material prices and recovering demand, it is expected that product prices will continue to increase in the second and third quarters. With simultaneous enhancements in domestic and international capacities, the group anticipates an overall capacity increase of 20% in 2012 and 2013. By 2015, "Bao Dashi" is projected to have 350 locations.
Li pointed out that the tape industry is used across various technology sectors, indicating continued growth. In May, YC will integrate Tianchi Technology (3171-TW) with "Bao Dashi" to develop cloud-based distribution services. Following this, the company will be renamed Xinzhou Global and will continue to expand its locations. The goal is to have 350 distribution points by 2015, including 50 in Taiwan and 300 across China from the coast to nationwide.
For YC's expansion plans, the sixth BOPP film production line with a capacity of 2,500 tons will contribute throughout the year, and the seventh line, also with a capacity of 2,500 tons, is set to commence operations in June 2013. With the first to fifth production lines currently operating at a monthly capacity of 7,000 tons, the total monthly capacity will reach 15,000 tons once the seventh line is fully operational.
ACHEM is focused on tape production and plans to add one more OPP and one more PVC production line at its Vietnam plant. The Yangmei plant will also launch niche tape products, significantly boosting ACHEM's gross margins and profitability. Both the Vietnam and Yangmei plants are expected to begin operations in the fourth quarter of this year. Additionally, a new PVC production line in Shanghai is expected to be operational by mid-year, increasing capacity by 10%.
Regarding Wangzhou Construction, the Yunpin project has been sold out and will be recognized in the financial results. The "Fengzhi Tree" project in Linkou is scheduled to be launched for sale in early May. |
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