China Electric, Ta Ya Electric team up in lighting in Vietnam

This article was published by the Taiwan Headlines on March 31, 2006. It reports that Taiwan's China Electric Manufacturing Co., Ltd. and Ta Ya Electric Wire & Cable Co., Ltd. recently announced their plan to establish a joint venture in Vietnam, in order to produce lighting fixtures for the Southeast Asian market. The factory is scheduled to begin its volume production in early 2007.

China Electric is currently the No. 1 lamp maker in Taiwan. The company does not rule out the possibility of moving more production lines to Vietnam in the future. According to the company, the Vietnamese market has a very high potential. Vietnam's harbors are also playing an increasingly important role in the country's exports to the Southeast Asia area, which is the major reason why China Electric plans to set up facility there.

China Electric has long depended on Ta Ya for electric wires and cables used in some of its products. In addition, Ta Ya has developed the market in Vietnam for about 10 years. The company's strong distribution channels in Vietnam make it an ideal partner for China Electric.

In order to boost their revenues, China Electric and Ta Ya will focus on developing high value-added electronic goods, such as photocatalytic and light-emitting diode (LED) lighting products, in the future. China Electric has already established an R&D unit to address the LED lighting market. In 2005 alone, China Electric and its reinvested businesses has combined revenue of NT$3 billion (US$93.7 million) and after-tax net income of NT$280 million (US$8.7 million).