Hu Lane Lands OE Parts Order from Sino-American Automaker in Shanghai

Hu Lane Associate Inc., a major manufacturer of automotive connectors and terminals based in Taiwan, recently said that it has tapped into the supply chain of a China-U.S. auto-manufacturing venture in China, with such credibility-enhancing feat to potentially help the original equipment (OE) parts supplier win more orders from other international automakers.

To meet potential demand surge, Hu Lane has started production-capacity expansion at its factory in Nanjing, China, with its new factory in Dongguan, Guangdong Province scheduled for mass production in late Q1, 2015, and plans in the works to expand production into Vietnam.

Hu Lane, since its founding, has been one of the few companies in Taiwan focusing on development and production of automotive connectors and terminals, having developed business in China for over 10 years and witnessing rapid growth driven by China's progress into the world's largest automobile market by sales volume.

Adhering to own-brand marketing strategy in China, Hu Lane is a major supplier to independent Chinese automakers (companies without technical partnership with foreign automakers) to enjoy steadily increasing market share. With the new order from the new Sino-American carmaker in Shanghai, Hu Lane is even more optimistic about its business development.

Industry sources say that Hu Lane is typically quite conservative in  expansion, so the company's recent announcement to expand capacity certainly indicates brimming optimism towards business growth.

Hu Lane's increasing shipments in China has led to eye-catching H1 results, with registered net earnings of NT$354 million (US$11.8 million), up 16.1% year-on-year (YoY), for earnings per share (EPS) of NT$3.65 (US$0.12). In Q3, a traditional off season, Hu Lane still reported quarterly revenue of NT$760 million (US$25.3 million), a minor 2.4% quarter-on-quarter (QoQ) drop.