Outsourcing to Asia for auto parts by international automakers have been rising, and many original equipment (OE) parts suppliers in Taiwan have kicked off capacity-expansion plans to meet flooding demand.

Hota Industrial Manufacturing Co., Ltd., an OE transmission gear and parts supplier to automakers, plans to further expand capacity at its factory in Tainan, southern Taiwan. Thanks to increasing exports to major customer Punch`s factory in Nanjing, China, independent Chinese automakers, and vehicle makers in Southeast Asia, Hota said that its production capacity is inadequate.

Hota said it plans to pour about NT$200 million (US$6.7 million) into procuring new equipment for adding capacity. Some institutional investors forecast that Hota would register record high revenue of NT$900 million (US$30 million) in the fourth quarter, up about 10% quarter-on-quarter (QoQ).

Tong Yang Industrial Co., Ltd., major body-parts maker in Taiwan supplying to both OE and aftermarket (AM) customers worldwide, is already expanding its factory in Guanyin, northern Taiwan, to double its coating capacity. The firm`s headquarters in Tainan, southern Taiwan, is also investing in setting up a new chrome-plating production line to double capacity.

Thanks to increasing export sales, Ta Yih Industrial Co., a major Taiwanese OE auto-lamp supplier, is expected to report record high revenue of about NT$1.2 billion (US$40 million) in the fourth quarter.
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