 2015-11-05 |
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Striving for Higher Utilization Rates and Expanding New Customers, YC’s Structural Adjustment Benefits Expected to Emerge Starting Next Year
November 5, 2015, 08:59
YC Group held a ceremony yesterday (4th) to mark the completion of its new headquarters building and the company’s anniversary celebration. President Li Zhixian stated that due to low oil prices this year, the group's profits were below expectations. In response, the group has undertaken structural adjustments for its subsidiaries YC (4306), Achem (1715), and Shin Kong (3171). These adjustments are expected to show benefits starting next year (2016). The group will fully focus on increasing utilization rates and expanding its customer base.
Achem Chairman Lin You-sheng mentioned that this year the company has undertaken vertical integration of OPP and PVC tape production. The benefits of this vertical integration are expected to be realized starting next year, with the company actively pursuing orders to fully support the increase in utilization rates. He is optimistic about the steady recovery of the U.S. market, which is expected to drive the growth in demand for adhesive tape. The target for revenue growth next year (2016) is set at 15%. Additionally, between 2015 and 2016, the company anticipates adding another hot melt adhesive production line.
Shin Kong Chairman Jiang Wen-rong stated that this year the company adjusted its strategy for developing the Chinese market. After changing the layout of its locations in China, the company will no longer focus on expanding physical locations but will instead pursue stable, large enterprise customers and expand its new customer base. The company has already added 2-3 new customers, leading to significant growth in operational performance. Operations in Taiwan remain stable. Furthermore, benefiting from the drop in raw material prices, there will be opportunities for favorable price differentials in sales channels, making this year's outlook optimistic. In the future, the company plans to expand packaging materials in the central and southern regions, as well as in the tourism packaging demand areas of Hualien and Taitung. |
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