 2015-11-12 |
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By Zhou Yilang, Taipei
Due to the economic slowdown and low oil prices affecting profits, YC Group has implemented structural adjustments this year for its subsidiaries, including YC (4306), Achem (1715), and Xinzhu (3171). These adjustments are expected to yield benefits starting next year, with a focus on increasing operational efficiency and expanding the customer base.
The YC Group comprises three listed companies: YC, Achem, and Xinzhu. This year, they have reorganized their structures. The PP film division of YC has been transferred to Achem, allowing Achem to focus on tape manufacturing as its core business. YC has transitioned into a holding company, while Xinzhu will concentrate on developing tape distribution channels.
Achem Anticipates Growth in Tape Demand
Achem Chairman Lin You-sheng expects the benefits of vertical integration of OPP and PVC tapes to become apparent starting next year. The company plans to actively develop orders and maximize operational efficiency. He is optimistic about growth in tape demand driven by a stable economic recovery in the U.S. and plans to add a new hot-melt adhesive production line in 2016. The vertical integration is expected to boost production capacity and, combined with new niche products like PE and hot-melt adhesives, should lead to a 15% growth in operations next year.
Xinzhu Adjusts Strategy for the Chinese Market
Xinzhu Chairman Jiang Wenrong indicated that the company has adjusted its strategy for the Chinese market this year. After changing its site layout, Xinzhu is focusing on stable large enterprise clients rather than expanding new locations. The company has added 2-3 new clients, significantly improving operational performance.
Jiang noted that Taiwan’s operations have remained stable. Benefiting from lower raw material costs, profit margins in sales channels are gradually improving, leading to an optimistic outlook for this year. Xinzhu plans to expand its packaging material offerings, particularly targeting tourism packaging needs in central and southern Taiwan, as well as the Hualien and Taitung regions.
In addition, Xinzhu is expanding its "Packaging Master" distribution network, with 75 locations in Taiwan and four in China. Plans for next year include adding 1-2 locations in southern China and strengthening its presence in key provinces such as Shanghai, Jiangsu, Liaoning, Henan, Sichuan, Guangdong, and Fujian, with a target of a 20% increase in operational growth.
Recently, Xinzhu announced its appointment as the Taiwan distributor for Keofeng’s uninterruptible power supply (UPS) products. Xinzhu Global Vice General Manager Li Minhua stated that the partnership with Keofeng aims to provide better service to customers. |
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