 2012-12-17 |
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Economic Daily News, Taipei
Focusing on domestic market opportunities, YC (4306) has initiated a strategic adjustment for production and sales in China. President Li Chih-Hsien stated that the group operates eight factories in China. The plan is to specialize the Shanghai plant in PVC tape production, while relocating OPP and BOPP packaging tape production to the Ningbo plant to be closer to upstream raw material film, thus enhancing cost competitiveness. Furthermore, ACHEM's investment project, which involves the annual production of 80,000 tons of acrylic acid, will significantly improve the group's profit structure.
Li emphasized that although the economic situation is tough, this is an ideal time for expansion. Once the capacity expansions in Taiwan, Vietnam, and China are completed, the group's product lines will cover five major adhesive tape categories. Three of these—PP tape, OPP tape, and PVC tape—are produced through vertical integration, which will greatly benefit the group's profitability. Considering the real estate market and policy adjustments, YC Group will focus on adhesive tapes and raw materials as its core businesses next year, while slowing down and adjusting its real estate projects.
Li noted that the new PVC and OPP tape production lines at the Yangmei plant in Taiwan, the Vietnam plant, and the two newly added PVC tape lines at the Shanghai plant in China have already begun operations. The benefits are expected to be fully realized next year. Additionally, new production lines will be launched in Taiwan and China next year, providing important momentum for the steady growth of the core business. Regarding the packaging materials business, the group's distribution channels will first aim for profitability before further expansion, with Xinzhou Global expected to turn a profit next year.
In terms of land assets, YC still holds multiple land plots in Linkou, totaling around 4,000 ping, mostly along the Airport MRT line, with strong development and appreciation prospects.
Next year, YC plans to build a 29-story residential-commercial mixed-use building on a 1,200-ping plot of land on Wenhua 3rd Road in Linkou. The lower floors will be designated for commercial use, while the upper floors will be residential. The total sales value is expected to reach approximately NT$5 billion, with the price per ping estimated at over NT$300,000. Revenue from this project is expected to be realized in three to four years.
(News source: Commercial Times – Report by Hsuan-Yi Peng, Taipei) |
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