Not merely wires and cables, TA YA is selling originality(Journalist: MeiXing Shen / Taipei report)

2012/04/23

TA YA will continuously make investment in Taiwan, China, Vietnam and other areas in the wire and cable business, but TA YA is not in a position to make big investments, Shanghung Shen, Chairman of TA YA Electric Wire & Cable Co. said. Instead of holding back from investment, TA YA will keep doing business and investing on a prudent and conservative basis. Capital expenditure this year will continue according to the plan made last year to replace obsolete equipment, improve efficiency, and purchase new equipment. The total investment amount is NT$ 270 million, Chair Shen continues. TA YA has magnet wire plants in Shenzhen, Zhangzhou and Kunshan, which contribute NT$ 5 billion to annual revenue. Only replacement of obsolete equipment is needed and no establishment of new plants is planned currently. In addition to the three plants in China that sell products directly, TA YA has two distribution centers in Chongqing and Tianjin, and another two distribution centers are to be founded in China this year, Chairman Shen said. TA YA has two plants in Dong Nai and Hai Duong. Though the Vietnamese dong has depreciated in the past two or three years, both plants in Vietnam were profitable and each plant made a profit of more than NT$ 10 million. The new business of TA YA stretches from the manufacturing to service sectors. TA YA invested NT$ 10 million to NT$ 20 million in Taer Innovation (paidup capital: NT$ 15 million) and Esoterism (paidup capital: NT$ 18 million) in October and November last year. Both companies operate in the industrial design and venture capital fields. Protective shell used with the iPad and iPhone as well as power cables and material wires, for example, are designed by both companies, Shanghung Shen said.
Both companies are meaningful to TA YA in the development of the brand and as outlets. They bring added value to TA YA’s wire and cable products. TA YA has long provided electric cables and magnet wires to Taipower, Delta Electronics, and TSMC. In the future, TA YA will sell products with its own brand and though its own outlets. Business will be developed with innovation from the current B2B and B2C models.    Esoterism has more than 28,000 fans on the Internet. It develops protective shells for the iPad and iPhone and may create operation income of NT$ 50 million to NT$ 60 million this year. Taer Innovation makes products related to green living. Planting vegetables at home is an example. The patent for an exclusive technique is under application and the product, a power management device related to the original business of TA YA, will be introduced to the market after the patent is registered, Shanghung Shen said


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