Volkswagen Planning to Set Up Plants in Taiwan May Benefit CSC and Chun Yu

2013-04-26

 German car manufacturer Volkswagen plans to set up plants in Taiwan, heightening the expectation of increasing demand for sheetmetals and fasteners. If the investment gets the governmental approval, it is expected that several sheetmetals and fasteners manufacturers, whicg have been currently supplying directly/indirectly materials to Volkswagen, will be the largest beneficiaries.

CSC stated that it continues to supply 800,000 metric tons of automotive sheetmetals (including hot-rolled, acid pickling, cold-rolled, hot-dip galvanized steel rolls) each year. 40% of the amount is for domestic sales while the other 60% is for foreign car manufacturers like Volkswagen. It added, with the expansion of the bussines in foreign automotive markets, CSC is also active in developing the markets in China, Southeast Asia, North America, and Europe. It is expected that the growth this year will be 10-20%. China Steel Global Trading Corp., a family of the CSC Group, said over 100,000 metric tons of automotive parts it exports are shipped to Volkwagen plants in Germany, Brazil, and Mexico. General Manager Han of Boltun Corporation with the annual capacity up to 100,000 metric tons said that 60-70% of the demand of Volkwagen Shanghai for auto fasteners is supplied by Boltun factory in Xiamen and they are the largest supplier of Volkwagen. Considering the news of Volkswagen considering setting up plants in Taiwan, Han said it is true but the government should provide a better environmnet for investment. They are contacting Volkwagen for the supply, and it is possible that they can  grasp the chance; Chun Yu also said, over 30% of their products are for cars and are mostly exported to car maunufacturers in Europe and the U.S. They welcome Volkwagen to set up plants in Taiwan and can supply them materials soon; San Shing Fastech said 80% of its products are exported to Volkwagen, Ford, Volvo, and Chrysler. If Volkswagen really comes,  it is a chance for it; Jinn Her said, the monthly fastener production is 6,000 metric tons per month, and 10% of the amount is automotive alloy fasteners. In order to increase the quality, currently it invested NTD 0.2 billion to set up a plant with the monthly capacity of 5,000 metric tons of spheroidized wire.