Automotive components maker Hota Industrial Manufacturing Co (和大工業) plans to begin construction of eight production lines at its two plants in the Chiayi Dapumei Precision Machinery Park (嘉義大埔美精密機械園區) next quarter as major clients BorgWarner Inc and Tesla Inc increase demand for its gears and driveshaft components.
“Six new production lines at our No. 1 plant in the Dapumei Precision Machinery Park are expected to be completed in the second quarter of next year, as the existing eight production lines have been running at full capacity,” a Hota official said by telephone on Wednesday.
“Meanwhile, two new smart production lines at the Dapumei No. 2 plant would be installed next quarter,” said the official, who declined to be named.
Following the completion of the eight new lines, the company’s production value is expected to increase from NT$200 million (US$6.44 million) this month to NT$350 million monthly next year, the official said.
Given steady growth in global shipments of electric vehicles, Hota plans to build a third plant in Dapumei later this year, with an investment of more than NT$4 billion, the official said.
The company plans to install 10 smart production lines at the new plant to supply transmission products for clients in Europe, the US, South Korea and China, the official said, adding that the plant is expected to start operations in 2021.
Hota’s sales last month dipped 19.98 percent annually to NT$517.65 million, but the figure was the highest in seven months thanks to rising orders, the official said.
Cumulative sales in the first eight months of this year dropped 17.5 percent year-on-year to NT$4.01 billion amid a sluggish global auto market affected by a US-China trade dispute, the official said.