 2012-11-19 |
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By Yih-Lang Chou, Economic Daily News
YC (4306) Group recently broke ground on its new headquarters in Neihu. Chairman Li Chih-Hsien announced that, in line with the upcoming expansion of the group’s three main companies—YC, Xinzhou Global, and ACHEM—Neihu will be developed as the group’s operations hub. The group also plans to recruit 500 additional employees across Taiwan and Mainland China, bringing the total number of employees to over 4,000.
Last Friday, YC’s stock price closed at NT$18.6, down NT$0.3, with 824 shares traded.
Li stated that after more than two years of planning, construction of the new headquarters has officially begun. Upon completion, all three publicly listed companies—YC, ACHEM, and Xinzhou Global—will move to the new location. YC Group aims to adopt a centralized management structure similar to that of the Formosa Plastics Group, with the general management department overseeing all subsidiaries, thereby improving administrative efficiency and reducing personnel costs.
The new headquarters is located in Neihu’s fifth development phase, on a plot of land near the intersection of Xingshan Road and Xinhu 2nd Road. The original area of 1,838 ping was reduced by 738 ping after a sale in July of last year, leaving approximately 1,100 ping for development. The total floor area of the headquarters is expected to be around 8,000 ping, with estimated completion by the end of 2014.
Regarding the group’s future direction, Li noted that YC focuses on producing adhesive films, ACHEM on adhesive tapes, and Xinzhou Global on downstream distribution. Another subsidiary, located in Mainland China, ACHEM Petrochemicals, produces acrylic acid and butyl acrylate. The first phase of construction for the petrochemical plant began in July this year and is expected to be completed and operational by the fourth quarter of 2013. With this development, YC Group will establish a fully integrated operation model.
As part of its expansion, YC Group plans to hire approximately 300 new employees domestically and 200 employees overseas, including in Vietnam and Mainland China, bringing the total workforce to over 4,000.
Looking ahead, Li expressed confidence that despite the global economic downturn, next year’s revenue will exceed this year’s. He expects explosive growth in ACHEM and Xinzhou Global. ACHEM is expanding production in Taiwan, Mainland China, and Vietnam, with new PVC and OPP adhesive tape production lines at the Yangmei plant in Taiwan and the Vietnam plant starting operations this quarter. The two new PVC adhesive tape production lines at the Shanghai plant in Mainland China also began operations in the second half of the year.
Since YC took over Xinzhou Global, its third-quarter financial performance has improved. The company plans to exit the simplified computer business by the end of the year and focus entirely on the distribution business. With full recognition of distribution revenue throughout next year, sales are expected to grow significantly.
To meet the demand for film products from clients like 3M, YC is also building its seventh film production line, which is expected to be operational by mid-next year. |
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