Taiwanese wheel maker Hota Industrial to build $265 mil. new factory amid demand for EVs: report
TAIPEI, NNA—Taiwanese auto components manufacturer Hota Industrial MFG. Co. plans to spend NT$8 billion ($267 million) on a factory that will answer a growing demand for electric vehicles, the Taipei-based Economic Daily News reports.
The company that specializes in wheels will build a 46,270-square-meter plant in the Dapumei Precision Machinery Industrial Park in the southern Taiwan city of Chaiyi. Construction is set to begin in 2022.
“Hota Industrial is poised to prepare for the capacities required to supply major electric vehicle makers in Asia, Europe, and the United States for 2021,” Chairman David Shen was quoted saying May 15 in the report.
Shen waxed optimistic about a long-term recovery of the automotive market and blamed the Covid-19 pandemic for bites in near-term revenue.
The company had already accelerated production over the past few years by setting up three plants in the same industrial complex, the news report says. The third, costing NT$14 billion, was due to start up in March, the firm said in an announcement.
As a group, the existing factories with the one due to start construction in 2022 will form its largest production base in Taiwan, the report said. The manufacturer also operates factories in China as well as sales and logistics units in Japan and the United States, according to its website. It specializes in wheels for automobiles, motorcycles and tractors.
Electric vehicle consumption should exceed 26.9 million units by 2030 from about 3.3 million last year, research firm MarketsandMarkets forecasts.
Economic impacts from the Covid-19 pandemic have hurt company revenue over the first four month of this year. It reported sales of NT$168.5 million last month, down 67 percent from April 2019, and NT$1.58 billion during the January-April period, a 20.8 percent drop from the same months of 2019, according to its financial statement.
Shutdowns in some countries have hobbled factory work, while consumers left jobless in many places because of stay-home orders are buying less.
Hota Industrial expects that sales will begin growing in June with a return of regular shipments, the news report said. “Clients are ramping up orders as fears for the coronavirus disease recede,” Shen was quoted saying.
North America presents the largest market for the firm at 69 percent of overall sales in 2018, its data show.
Hota Industrial spokespeople were not available for comment.