Jui Li to start second-stage expansion of auto body parts plant in China

Taipei, Aug. 12, 2004 (CENS)--Jui Li Enterprise Co. Ltd., the No. 3 sheet-metal auto body-parts maker in Taiwan, is scheduled to complete the first-stage capacity expansion project of its plant in Hainan Province, mainland China in mid-August and will immediately kick off the second-stage expansion.

Jui Li's Hainan plant expects to ship 80,000 sets of auto body parts this year, up 45% from 55,000 sets last year, and the volume is expected to rise to 150,000 sets next year.

Jui Li's Hainan plant, established in 2003 at a cost of NT$90 million (US$2.63 million at US$1: NT$34.2), supplies products mainly to FAW-Hainan Motor Co., Ltd. (FHC), which produces Mazda cars and minivan models. The Taiwan parts maker said that FAW-Hainan currently has an annual capacity of 80,000 new cars and is carrying out the third-stage expansion project to meet the strong demand from the booming China automobile market.

In addition to Jui Li, industry sources said, FAW-Hainan has required several Taiwan parts makers to set up production facilities there for direct supply to the firm, including Hsin Chong Machinery Works Co., Ltd. (which produces oil pans, hand-brake levers, and door hinges etc.) and Yuan Hwa Promote Co., Ltd. (fuel tanks, engine hoods, door panels and roof frames etc.)

Jui Li's modern and integrated plant in Hainan currently produces fenders, engine hoods, door panels. Its capacity has been expanded along with the growing demand from FAW-Hainan. The firm's Chinese subsidiary raked in earnings of NT$40 million (US$1.17 million) last year and is expected to have revenue of NT$700 million (US$20.47 million) and earnings of NT$80 million (US$2.34 million) this year.

Jui Li President Lu Zue-huei said that Jui Li has secured new supply contracts with some other auto makers in China, including Changan Ford (in Sichuan Province) and South East (Fujian). Jui Li's Hainan plant is expected to ship parts for 250,000 cars per year in the coming few years.