| Nan Ya Plastics Co., Ltd. |
|
|
| |
 |
Product : |
|
|
 |
| electronic material, plastics materials, PVC leather, sponge leather, solid leather, nylon leather, sponge sheet, inflatable PVC sheeting, clear PVC sheeting, flexible PVC sheeting, semi-rigid PVC sheeting laminated & embossed PVC sheeting, printed PVC sheeting, PEPA sheeting, PU leather. |
| |
| |
|
|
|
| |
 |
Company Description: |
|
|
| The global economy in 2002 gradually emerged out of recession, but the recovery was still weak and slow. spurred by the global rebound, taiwan managed to shake free of the predicament of negative growth, showing modest gain in exports and some signs of vigor in the traditional sectors. but with persistently high unemployment rate, low investor confidence, continuing depreciation of ntd, and conservative consumer spending, the domestic economy was still on shaky ground and businesses still faced stern challenges. to seek breakthrough in the harsh business environment, we adhered to our long-standing spirits of diligence and perseverance, and continued with various reforms to strengthen our business structure, cut costs and develop high added-value products. our electronic materials business registered increase in sales volume in 2002, but the income and profits barely met the expectations due to intense price competition. we saw considerable growth in both income and profits in our core businesses of plastic and fiber as a result of vigorous efforts in cost reduction and development of high added-value products, additional capacity of specialty chemicals, higher sales prices, and increased sales in pet chips and special fiber products, since taiwan's tertiary processing factories moved in masses to mainland china, china has become a major market for plastic products. to serve the needs of customers and get a handle on the local markets, we have embarked on plant constructions in china in recent years. besides the flexible pvc sheeting plant in guangzhou and pvc leather and pu synthetic leather plants in nantong that have been in full-capacity production with rising profits each year, our rigid pvc film in guangzhou and nantong are also in service. currently we are speeding up the construction of pu leather, casting pvc leather, engineering plastics and up resin plants in huizhou. as these plants are being completed successively by 2003, we will be able to serve the local customers and expect to see continuing growth in sales. in light of increasing demands for building materials and packing films in mainland china, we have built rigid pvc pipe, plastic injection moulding and plastic film plants in xiamen and chongqing. in 2002, we completed the expansion projects for bathroom doors and pvc granule in nantong and chongqing, and embarked on the construction of bopp film plants in nantong and huizhou. our flexible pvc sheeting and rigid pvc film plants in the united states are in steady operation despite of strong competition from asia. aside from persistently enhancing cost control and process and quality upgrade, we adjusted the product mix to keep in line with changes in the us market and customer needs, and vigorously developed high added-value products to boost sales. the aggregate revenue of our two plants in the us amounted to us$170 million in 2002, total sales volume of our polyester fiber products in 2002 amounted to 684,000 tons, 19.4% more than last year. because of increased demands for fiber products, higher sale prices, successful conversion of capacity for pet chips that boosted the capacity utilization rate, and increased sales of special fiber products, such as conjugate staple fiber, microfiber, and elastic yarn, we saw growth in both sales and profits of our fiber products. in addition, the wave of expansion by polyester fiber plants in china produced increasing demands for eg, resulting in eg shortage. with annual capacity of 520,000 tons for eg, we can meet our own needs and sell the excess for profits, currently we are stepping up the construction of the third eg plant with annual capacity of 350,000 tons, which is slated for completion in september 2003 and will further boost our eg capacity to 870,000 tons. under limited supply and strong demands in the market, we expect eg business to make sizable contribution to company profits. our polyester fiber plant in south carolina now has an annual capacity of 860,000 tons. the plant generated revenue of us$700 million in 2002. products of special specifications, such as conjugate staple fiber and pet chips are accounting for greater weight of the sales. our upstream raw material eg plant in texas now has an annual capacity of 350,000 tons which supplies the south carolina polyester fiber plant and sells to other plants. because of rising eg prices, the plant is expected to see its profits surge in 2003, the electronic material market remained weak in 2002. due to excess capacity that led to fierce price competition, the sales of our copper clad laminate increased, but profits shrank. to gain an edge in the market, we plan to focus on large customers and step up the sales of inner laminate and high-end products. in light of the trend that the orders for low-end pcb, such as double-side board and four-layer board are shifting to mainland china, we have been actively deploying in the mainland market. we first set up shipping warehouses in southern parts of china and dispatched sales representatives there to vie for orders. when our 500,000 sheets/month cooper clad laminate plant in kunshan completes the expansion in 2003, we will be providing swifter service to the pcb clients nearby. as for lcd products, we step up services for major clients and vigorously develop the consumer markets in japan and europe. in consideration of the fast growing handset market in china, we target large local handset suppliers for business. also anticipating extensive applications of color lcd in the communication products, we continue to develop low power consumption color products. our ongoing expansion of color filter production to an annual capacity of 840,000 pieces is also expected to complete in 2003. upon its completion, sales of color lcd is expected to grow further under ample supply of raw materials and reduced costs, the growing demands for electronic products did not materialize in 2002. pcb products were in capacity overhang two years in a row. in the fierce price war of pcb manufacturers, some suppliers folded up. to circumvent the low-price competition, the nan ya printed circuit board corporation, a spin-off of nan ya plastics, opted to develop high profit margin products and strive for orders of large corporations, such as intel. it also entered strategic alliance with dell. with those strenuous efforts, na ya pcb was able to sustain certain level of business amidst a persistently slow market. in recent years the company has been changing focus to developing diversified product lines to lower operating risks. for example, the company develops the pcb for intel's next-generation processors and chipset, and pcb used in communication products, handset and automobiles, which are mass-produced after acquiring the certification of customers. nan ya's china pcb plant expansion with annual capacity of 3.6 million square feet is in operation in 2002 to serve the local customers, as for nanya technology corp., another joint venture of nan ya plastics, its fab i and fab ii produced 30,000 wafers and 33,000 wafers of 0.175 micron 256m ddr dram per month in 2002, and began gradual switch to 0.14 micron process since the third quarter of the year. the total conversion is expected to be completed by the first quarter of 2003. the global dram market in 2002 was at best chaotic. some semiconductor manufacturers had poorer yield than expected after they switched from sdram to ddr, resulting in lower-than-expected ddr output. on the other hand, intel's push for ddr-spec chips accelerated the demands for ddr. because nanya technology went into volume production of ddr before its competitors, it was able to ride the opportunity to launch its brandname products, enjoy brisk sales, and grab the oem orders of compaq and dell. as a result, it was the only profitable dram manufacturer in the country. in process technology, nanya technology is vigorously working on the conversion to 0.11 micron process. for the sake of maintaining long-term competitiveness and boosting its own capacity, the company entered strategic alliance with infineon to jointly develop 90 nanometer and 70 nanometer processes and build a 12-inch wafer fab. with fewer 12-inch wafer makers and high entry barrier, the dram market is expected to become an oligopolistic market in the foreseeable future, in which nanya technology will be a world-class memory maker with an edge in leading technology and low costs, a joint venture of nan ya technology and lnfineon looking into 2003, there are many variables for whether the global economy will undergo a full-fledged recovery. taiwan is also faced with many uncertainties. while our industry requires restructuring, more challenges and impacts will be forthcoming following our wto accession. the business environment awaiting will be more formidable and testing the management of many businesses. we will adopt a prudent and pro-active approach aiming at surpassing ourselves and enhancing our core competency. we will vigorously embark on the expansion of more profitable specialty chemicals, and expect to garner higher profits in anticipation of higher sale prices. in light of the swift change of market landscape and the pressing needs to reduce labor costs, we have been embarking on plant construction and expansion for plastic products in mainland china. starting in 2003, plants in kunshan, china for a series of electronic materials, such as copper clad laminate, glass fiber cloth, cooper coil and epoxy resin are slated for completion, that will help us reduce costs and better serve our customers by cutting down delivery time. as we have persistently undergone construction of production facilities for upstream petrochemical materials and electronic materials, our vertical integration is close to completion, and operations more diversified. our investments in formosa petrochemical corp., mailiao power corp., nanya technology corp., pfg fiber glass corp., and nan ya printed circuit board corp. will also make greater contribution to our profit picture in 2003. we firmly believe that we are capable of surmounting any difficulty and maintaining steady growth in difficult time, nan ya plastics manufactures primarily plastics, fiber and electronic materials. in the aspect of plastic products, total domestic consumption of pvc resin in 2002 was 380,000 tons, 3% less than the level of the year before. in recent years, large number of tertiary plastic processing businesses opted to move to mainland china and acquired raw materials in the local markets. with fewer tertiary processing factories left, the demands for taiwan's secondary processed products continued to shrink. in response to the changing and adverse business environment, we continued to carry out improvement programs to enhance product quality and reduce costs. we also worked more closely with our downstream customers to help them develop markets and products that are in line with market trends. we sped up the development of new products, new applications and high added-value products with unique features, such as eva film, pet film, tpu chip, super clear bopp film and pearlized paper (pepa) to expand market applications of plastic products. as a result of our efforts on various fronts, we recorded modest growth of 4% in the sales of plastic products. in addition, as our capacity expansions under the no. 6 naphtha cracker project are being completed, we have seen greater returns on our investments. for example, the rising prices of dop, pa and 2eh have contributed measurably to our profits. in 2002, plants of ao, cpe and pa were brought on-stream. as we sell more petrochemical materials each year, the income earned will account for an increasing percentage of our overall profit. |
| |
 |
Company Profile: |
|
|
| |
| |
| |
 |
Product Categories: |
|
|
|
|
| |
|
| |
|
|
| |
| |
 |
|
