 |
After
the Zhangzhou magnet wire plant initiated production, Chairman Shang-hung Shen
of Ta Ya (1609) indicated yesterday (26) that he had high expectations for
China’s magnet wire market. Plans are in place to establish sales locations in
Chongqing to capitalize on the western triangle market.
Under
the Chinese government’s “12th Five Year Plan,” there is emphasis in
the growth potential of western China. Many enterprises have moved their
production plants west. Shang-hung Shen expected that the western market will
enlarge in the future. Currently, the fifth sales location is planned to be
established in Chongqing to capitalize on future opportunities. Yesterday, Ta
Ya’s stocks fell by $CNY 0.02, closing at CNY$ 7.95.
Shang-hung
Shen indicated that China’s domestic demand for the magnet wire market is still
growing at a rate of 8% to 10% annually. Due to the many types of magnet wires
that exist, many of them are custom-made. Although the market for them exists,
the key is to penetrate the market and secure orders. Market deployments are
necessary prior to the emergence of demand for magnet wires in the western
triangle.
Ta
Ya’s third magnet wire plant in Zhangzhou, China, had initiated production this
month. Shang-hung Shen believed that the Zhangzhou plant is capable of
supplying markets in Fujian and Jianxi. Because the plant is located betweenthe
Dongwan and Kuenshan plants, it can also bridge production gaps between the two
plants.
Currently,
Ta Ya’s involvement in China consists primarily of magnet wire production from
the Zhangzhou, Dongwan, and Kuenshan plants to supply four sales locations in
Tianjin, Kuenshan, Shenchuan, and Xiamen. Shang-hung Shen explained that Ta Ya employs
the concentrated production and diversified orders method in China, where the
Dongwan plant is responsible for markets in southern China and the western
triangle, the Kuanshan plant is responsible for Bohai Sea and Yangtze River
Delta, and the Zhangzhou plant is responsible for regions in Fujian and
Jiangxi.
Shang-hung
Shen stated that growth is limited in the electric wire and cable markets. Major
business opportunities are still to be found in magnet wires. Aside from the
Chinese market, the Indian market is also an area where Ta Ya is proactively
marketing the sale of its magnet wires.
Other
than magnet wires, Ta Ya is also actively searching for external sales markets
of electric wires and cables. Because of India’s inferior infrastructures, there
are lucrative business opportunities for electric wires and cables. Also, as
India does not have localized high voltage electric cable technologies, Ta Ya
had purchases two production facilities that are now in testing stages as part
of its efforts to penetrate the external sales market in India.
Please see the Economic Times for detailed reports
(http://udn.com/NEWS/STOCK/STO4/6677788.shtml)