cens logo

Tong Yang Group Focuses Growth Ambitions on Mainland China

Apr 08, 2011 | By Quincy Liang

The Tong Yang Group, Taiwan's largest auto-parts conglomerate, recently announced a “1560” plan aimed at achieving an annual revenue growth of 15% to 20% over the next five years and doubling revenue to NT$60 billion (US$2 billion) in 2015.

Tong Yang president Raymond Wu predicted that the auto-parts industry would see explosive growth in mainland China, now the world's largest auto market, where the group will strive to expand its sales of original equipment (OE) parts. At the same time, the group will boost its production of aftermarket (AM) parts in Taiwan.

Raymond Wu, president of the Tong Yang Group
Raymond Wu, president of the Tong Yang Group

The Tong Yang Group reported consolidated revenue of about NT$35 billion (US$1.2 billion) in 2010 and expects an increase of 15% to 20% this year. Citing a forecast by the China Association of Automobile Manufacturers (CAAM), Wu said that new-car sales in China are expected to grow by 10% this year to about 20 million units, creating more opportunities for Tong Yang to sell its OE parts there. With the recovery of the auto market in Taiwan, the group also expects its domestic OE parts sales to increase by 5% to 10% in 2011.

The implementation of the Economic Cooperation Framework Agreement (ECFA) between Taiwan and China, Wu said, and the tariff reductions that it provides for, have prompted Tong Yang to focus its AM parts strategy on the Chinese market. “The key factor to achieving the goals of our ‘1560' plan,” he commented, “is the Chinese AM parts market.” The group's Nanjing subsidiary, Nanjing Tong Yang Plastics Co., will serve as the point man for the development of Tong Yang's AM parts market there.

Most Promising Market
China will be the most promising market for both OE and AM parts for the near future, Wu stated, especially since car ownership there has reached 85 million units.

The group expects to complete a new factory at Nanjing Tong Yang in the first half of this year. Wu reported that the company has already developed about 100 sets of molds and dies which are used for the production of AM parts at the Fuzhou Tong Yang Plastic Co., Nanjing Kaiyang Auto Plastic Parts Co., and Wuhu Youth Tongyang Auto Plastic Parts Co., all of which are affiliated with the group.

The president said that Tong Yang will gradually build up its own AM auto-parts sales channels in China, initially for parts mainly for international car models and then expanding to parts for home-grown Chinese models. The group plans to set up several regional warehouses in China so as to offer one-stop shopping services for parts buyers there.

To facilitate the more aggressive development of the OE parts market in China, Wu went on, his group will strengthen cooperation with the Guangzhou Automobile Industry Group Co. (GAIG) and FAW Group with the aim of extending its partnership relationships to all of the 10 biggest automakers there.

This year Tong Yang plans to set up a factory in Changsha in cooperation with GAIG-Fiat, and hopes to expand its OE parts supply to include GAIG-Honda and GAIG-Toyota.

The FAW Group will set up a new auto plant in Guangzhou, Wu reported, and his own company plans to establish a new facility there. In addition to courting ties with major automakers in China, Tong Yang also strives to forge cooperative ties with international first-tier OE parts makers there.

Tong Yang began moving into the Chinese market in 1994 and now has 16 factories there (including nine plastic-parts plants), some wholly owned and some partnerships. Its total investment there has reached US$111 million. These China operations produced total revenues of about NT$14.6 billion in 2010, an increase of 39.3% over the previous year. (Feb. 2011)


Industry In-Focus

ITRI Forms Industry-Gov Alliance for Universal EV Charging Platforms</h2>

ITRI Forms Industry-Gov Alliance for Universal EV Charging Platforms

Sep 29, 2020

Industrial Technology Research Institute (ITRI) has allied with around 50 firms and government agencies to develop electric vehicle (EV) batteries technologies, seeking to roll out a standardized platform and allow EVs of different brands to use the same batteries. The alliance aims to cultivate the island's EV industry and offer customers a more diverse selection of charging options to choose...


Latest PCB Industry Report NTI-100 Shows Growing Asian Reach</h2>

Latest PCB Industry Report NTI-100 Shows Growing Asian Reach

Sep 23, 2020

Global PCB NTI-100 2019 Fabricators report from the research agency heavyweight N.T.Information showed companies with over USD$1 billion revenue have increased compared to 2018. The report, annually compiled by Dr. Hayao Nakahar, showed in 2019, 122 fabricators were listed reporting revenue over USD$1 billion, an increase of four companies compared to the 2018 list. The report also found more ...


Surgical Masks: the New Battleground for Textile Industry</h2>

Surgical Masks: the New Battleground for Textile Industry

Sep 22, 2020

With most of society worldwide becoming more and more accustomed to wearing masks in the post-pandemic era, it has become a must-have accessory, attracting domestic textile firms into production. Traditional textile firms, such as Eclat Textile, Makalot, Far Eastern New Century, Everest, Roo Hsing, and QVE, have begun making masks, reports say. The COVID-19 pandemic has led to fewer consumers ...



Industry Reports

Functionality and PPE in Spotlight at Upcoming TITAS Expo on 10/13</h2>

Functionality and PPE in Spotlight at Upcoming TITAS Expo on 10/13

Sep 30, 2020

The upcoming Taipei Innovative Textile Application Show (TITAS) is entering its 24th edition, with 803 booths, 356 exhibitors from 11 countries, including Taiwan, Sweden, Germany, Japan, South Korea, Switzerland, the U.S., Vietnam, Hong Kong, Singapore, and China. Innovation, environmental-awareness, and products gearing towards the post-pandemic market are the focal points at TITAS. The five ...


Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms</h2>

Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms

Sep 28, 2020

The world's leading memory chip and smartphone maker Samsung Electronics is looking for potential display technology partnerships in Taiwan, specifically for mini/micro-LED industry applications. Local media Economic Daily News reported Samsung was partaking in a private project with LED driver IC supplier Macroblock Inc., a move signaling the Korean group's further ambition in the mini/micro-...


Strong Global Trade Rebound for Two-Consecutive Months: CPB</h2>

Strong Global Trade Rebound for Two-Consecutive Months: CPB

Sep 28, 2020

Since July, global trade volume continues to rebound, signaling economies' restarting in a bid to make up the worldwide lockdown this spring due to the pandemic. In a report released by the CPB Netherlands Bureau for Economic Policy Analysis, the CPB World Trade Monitor in July grew 4.8% compared to June, the largest increase since the bureau began compiling statistics in 2000. This is slightl...



Supplier News

Sheh Fung owns three factories, one of which located in Mituo District, KaoHsiung primarily focuses on packaging and heading.

Sheh Fung Screws' Profitable Q3 Prompts Goal for NT$2 Billion Sales by Year-End

Sep 24, 2020

■ Huang Chih-ming Located in Kaohsiung, Taiwan, Sheh Fung Screws Co., Ltd focuses on manufacturing three categories of screws: self-drilling screws, painted screws, and wood screws, often found in wood construction, sheet metal roofs, wood footpath, and DIY home decor applications. Currently, the U.S. is the firm's primary market, making up 64% of sales, 7% for Europe, 6% for Asia, and 12% for...

SHEH FUNG SCREWS CO., LTD.


Chipboard Screw, Special Wood Screw, provided by Shuenn Chang Fa

Quality Fastener Maker Shuenn Chang Fa Shows Resilience with Sales Boost

Sep 24, 2020

■ Huang Chih-ming Taiwanese quality fastener manufacturer Shuenn Chang Fa Enterprise Co., Ltd.'s (SCF) presented exceptional ability to adapt to challenging times amid the COVID-19 pandemic. Unlike other firms, SCF leveraged its production strategy with its new plant, and even saw sales performing better than expected. SCF’s newest factory expands the original 10,000-square meters factory g...

SHUENN CHANG FA ENTERPRISE CO., LTD.


Stainless Steel Screws, provides by Ray Fu Enterprise Co., Ltd.

Ray Fu's Reliable Fastener Quality for Clients Bolsters Q4 Sales

Sep 24, 2020

■ Huang Chih-ming Ray Fu Enterprise Co., Ltd. is a Taiwanese professional exporter for various fasteners and steel wires. Along with its parent company Chen Nan Iron Wire, both firms are located in Kaohsiung City of southern Taiwan. Ray Fu manages a wire rod storage, spheroidizing annealing furnace, pickling surface equipment, wiring drawing machinery, and fastener forming machine. While the C...

RAY FU ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...


Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities</h2>

Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities

Sep 01, 2020

Ms Fiona Chiew, Deputy General Manager, Messe Frankfurt (HK) Ltd, reflected that: “As the industry starts to spring back from the effects of COVID-19, we believe that highly influential platforms like Automechanika Shanghai play a crucial role rejuvenating the market. It is our mission to help players unlock their potential. Therefore, we are continuing to realign our resources by utilising new d...