 2012-12-21 |
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By Yih-Lang Chou, Economic Daily News, Taipei
Li Chih-Hsien, president of the YC (4306) group, announced that the group’s core business has entered an expansion phase. Over the next two years, production will increase across Taiwan, China, and Hong Kong, with more than NT$2 billion being invested in Taiwan alone. The entire expansion, including all five product lines, is expected to be completed by the first quarter of 2014, adding significant growth momentum to the group’s operations.
The five adhesive tape series include polypropylene (PP), OPP, PVC, polyethylene (PE), and double-sided tape.
At the Global Tape Forum held yesterday (the 20th), Li, also chairman of the Tape Association, remarked that despite the global economic downturn, YC has been actively adjusting its production structure to enhance competitiveness and profitability. The company is also increasing investment in niche products, with the full capacity expansion expected by the first quarter of 2014.
Regarding the vision for the group's three companies—YC, ACHEM, and Xinzhou Global—Li stated that YC serves as the group’s holding company, with plans to move upstream into raw material production. ACHEM focuses on various types of adhesive tapes, while Xinzhou Global is responsible for packaging materials and distribution.
Li noted that the group has slightly revised its approach to the distribution business, prioritizing profitability before further expansion. Xinzhou Global aims to break even this year and is expected to become profitable by 2013.
This year and next, YC Group will enter a phase of factory expansion, including facilities in Taiwan, China, and Vietnam. For example, NT$2 billion is being invested in the Yangmei and Changbin plants in Taiwan, which will create approximately 300 new domestic jobs next year.
Additionally, with a focus on the large ASEAN market, YC has acquired 10,000 square meters of land near its Vietnam plant to build a new factory, which will primarily produce packaging films and PVC adhesive tapes. Monthly production of PVC tape is expected to reach 1.5 million square meters, while packaging film production could reach 15 to 20 million square meters.
YC is already the world leader in OPP tape production, and it ranks second globally in PVC tape production, with a 12% market share. If the PVC tape expansion at the Dongguan Hengli plant progresses smoothly, YC may become the global leader after the new capacity comes online next year. Currently, the global leader in PVC tape production is Hebei Huaxia in China. |
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