YFY Targets US$333 Million Revenue from Household Paper

Taipei, July 23, 2012 (CENS)--Yuen Foong Yu Paper Mfg. Co., Ltd. (YFY), Taiwan’s leading paper-product manufacturer, is generating ever more revenue in China’s household paper market, with its Yangzhou (Jiangsu Province) plant to come online from the third quarter of 2012 with 45,000 metric tons in annual capacity, which will help to bring cross-strait revenue of household products to an estimated NT$10 billion (US$333 million), according to an institutional investor.

YFY has two household paper plants, one in Kunshan, Jiangsu province and another in Beijing, to tap the greater Shanghai and North China markets. The maker said its household paper business grew sizably among all products in the first half.

YFY owns three major brands of tissue paper: “Mayflower”, “Tender”, and “Deyi” in Taiwan, with the Mayflower line targeting upscale consumers and sold via Costco, the box-type hyper-market, to help boost sales of household paper in Taiwan.

YFY’s annul capacity of household paper reaches 70,000 metric tons in Taiwan, and 59,000 metric tons in China, which will rise to 104,000 metric tons after the Yangzhou plant starts operation.

YFY pointed out that its Yangzhou plant not only increases the capacity of tissues but also sales of base papers, with household paper business in the second half to help raise total revenue.

The maker’s revenue from household products accounted for 13.1% of total revenues last year, and surged to 15.3% in the first quarter of this year, with first-quarter revenues totaling NT$202 million (US$6.73 million), up 15% year on year.

After years of operation, profit losses from YFY’s base paper sales in Beijing and North China have dropped significantly, and business in Beijing is expected to start making profits due to raised capacity.