Taiwan car parts makers open to deals with Chinese mainland

• Source: The Global Times
• [17:56 May 08 2009]
• Comments

By Shi Jierui

Taiwan's top two auto parts makers, Tong Yang Industry Co, and TYC Brother Industrial Co, both said they are open to deals that may help boost sales in the Chinese mainland, Asia's biggest auto market.

Fan Liang-tung, executive secretary of "the Ministry of Economic Affairs' Investment Commission", said May 6 that the Taiwan "cabinet" was set to consider opening up 65 industries, including the autos, to investors from the Chinese mainland within two months.

According to Bloomberg, Tong Yang and TYC Brother have had trading double in Taipei on speculation the Chinese mainland carmakers' ties with Taiwan suppliers may lead to direct investments.

Tong Yang spokeswoman Fancy Hsu said Tong Yang would consider approaches from the Chinese mainland's investors. The company supplies carmakers including Chery Auto and FAW Group Corp, both from the Chinese mainland.

TYC Brother spokesman Hsia Kang said it would "welcome proposals from the Chinese mainland carmakers to buy a stake if the tie-up will help us expand in China and globally".

Chery and Geely are set to sell vehicles in Taiwan this year. And Jin Yibo, a spokesman for Chery told Bloomberg, "We see a lot of opportunities for development in Taiwan."

"It is a good idea to take over auto parts makers in Taiwan," Yale Zhang, a consultant at CSM Asia in Shanghai, told Bloomberg. "Component makers there have come up with outstanding technologies in many areas."

(Agencies also contributed to the story)