Hota Industrial Manufacturing Co (和大工業), which makes gears and shafts for cars, motorcycles and agricultural tractors, yesterday reported second-quarter revenue of NT$1.45 billion (US$44.88 million), a company record for the period.
Total revenue in the first half of this year totaled NT$2.88 billion, up by 13.66 percent from a year earlier on solid orders from BorgWarner Inc, Tesla Motors Inc and Punch Powertrain NV.
Another leading firm in the auto parts industry, Tong Yang Industry Co (東陽實業), also posted revenue growth in the first half, with accumulated sales totaling NT$11.8 billion, a 6 percent annual increase, according to the company’s filing with the Taiwan Stock Exchange.
Despite the sluggish global economy, increasing orders from international buyers were the main factor of the two company’s rising sales in the first half.
In response to rising demand, Hota is seeking to establish new plants in the US, because the company’s capacity might not meet future needs, chairman and CEO David Shen (沈國榮) said at the company’s annual general meeting last month.
Hota officials have visited the US many times and consider California as one possible location for new factories.
Once carmaker Tesla finalizes its actual number of orders with Hota, the Taiwanese firm plans to immediately adjust to the change, Shen said.
In addition to new plants in the US, the company has made adjustments to its local factories to increase capacity.
Two new automated and intelligent production lines in Chiayi County are to go into operation in September, the company said yesterday.
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