Taiwan Chelic constructing new plant in China

Pneumatic automation component maker Taiwan Chelic has disclosed it is constructing a plant in eastern China with investment of CNY180 million (US$25.5 million), with production set to start in July 2020, according to the company at a May investor conference.

The new plant is expected to generate CNY20 million in sales in second-half 2020, and CNY100 million in 2021, Chelic said, adding the plant's sales can reach as high as CNY300 million if production capacity is fully utilized.

Chelic has been obtaining many rush orders for components used in equipment to produce medical products in the wake of the coronavirus pandemic, and shipments for received orders have been scheduled until July 2020.

Chelic posted consolidated revenues of NT$293.2 million, gross margin of 30.95%, net operating profit of NT$10.4 million, net profit of NT$16.0 million and net EPS of NT$0.24 for first-quarter 2020. The China market accounted for 81% of the consolidated revenues.

Chelic's April consolidated revenues reached NT$158.6 million, growing 8.85% sequentially and 31.59% on year, and those of NT$450.5 million for January-April slipped 1.85% on year.