 2014-01-13 |
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Economic Daily Reporter: Zhou Yi-lang / Taipei
YC (4306) Group's various companies each have significant developments this year. The parent company, YC, is entering the upstream petrochemical raw materials sector for the first time, with its subsidiary, ACHEM Petrochemicals, set to start production in March, expected to generate around NT$5 billion in annual revenue. ACHEM Chemicals will add a polyethylene (PE) coating line in the second quarter. Xinzhou Global, which took over the packaging business this year, is expected to see a substantial increase in annual revenue.
Analysts forecast that with the addition of new businesses and products this year, YC’s revenue is expected to surpass NT$25 billion, a more than 27% increase from last year’s NT$19.6 billion.
In recent years, YC has been integrating its upstream and downstream industries and expanding its business scope through significant investments in Taiwan and China. In 2011, the company entered the upstream plastic sector by investing in ACHEM Petrochemicals (Jiangsu) Co., Ltd. This is the group's largest single investment project since its founding, carried out in two phases. The first phase of the construction began in July 2012 and is scheduled to complete and commence production in March this year.
Due to the surge in demand for PVC adhesive tape in China, ACHEM Chemicals has added four new PVC production lines from late last year to early this year. Additionally, the Hai’an Plan, expected to be completed by the end of the year, will bring six PVC film calendaring machines and six PVC tape coating lines into production next year.
Moreover, last year, YC sold its packaging department to its logistics and distribution subsidiary, Xinzhou Global, for no less than NT$396 million. With the business previously generating annual revenue of approximately NT$300 million, Xinzhou Global is expected to see significant revenue growth this year. |
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