Kao Fong Starts Building Factory in Central Taiwan Science Park
2014/02/19 | By Ken LiuKao Fong Machinery Co., Ltd. recently broke ground to construct a factory at the Central Taiwan Science Park to boost revenue to NT$2.4 billion (US$80 million) for 2014 and NT$3 billion (US$100 million) for 2015.
The company budgets an estimated NT$340 million (US$11.3 million) for the new factory, with NT$240 million (US$8 million) for construction and the remainder for production tools. The factory is designed to build heavy-duty double-column machines, with revenue set at NT$1 billion (US$33.3 million) a year initially and start-up scheduled for the end of this year.
Last year the machine-tool maker had consolidated revenue of NT$2 billion (US$67.3 million) and earnings of NT$1.6 per share or so, both new highs, which Kao Fong executives attribute mostly to orders from South Korean importers, China's carmakers, and European buyers.
So far this February, the company has won NT$180 million (US$6 million) of new orders, boosting booked orders to NT$480 million (US$16 million) to keep production lines humming until this May.
The company's president and chief executive officer (CEO), David Shen, also chairman of Hota Industrial Mfg. Co., Ltd., has vowed to increase combined revenue of the two companies to NT$10 billion (US$333 million) by 2016.
According to executives of the two companies, the two firms will also move to build factories on 24,420 square meters of land each acquired by the two companies at the Dapumei Intelligent Industrial Park in Chiayi County, southern Taiwan, at the end of this year. When completed, the first-stage production lines will take over part of the production of vertical-type machine tools.
In China, Kao Fong plans to build a factory in Huai'an City of Jiangsu Province. Its factory in Kunshan in the same province plans to increase revenue to around NT$100 million (US$3.3 million) this year from last year's NT$60 million (US$2 million). (KL)
Kao Fong's Expansion Plans in Taiwan & China
| Location
| Construction Date
| Product
| Capital Expenditure
|
| Central Taiwan Science Park
| Breaking ground on Feb. 2014,
| Heavy-duty double-column machines
| NT$340 million.
|
| Dapumei Intelligent Industrial Park, Taiwan
| At the end of 2014 at earliest
| Vertical-type machining centers
| NT$200 million for first-stage construction
|
| Huai'an City, mainland China
| Undecided
| Machining centers for linear guideway production
| Undecided
|