Hota Industrial Manufacturing Has Just Won Two Big, Long-Term Orders

Taipei, Dec. 7, 2012 (CENS)--Hota Industrial Manufacturing Co., Ltd. of Taiwan, a major automotive transmission parts maker, recently said that it has just won two big, long-term orders, including a seven-year order from an Australia-based company for special-vehicle automatic transmission gears, and another eight-year order from its largest customer BWA for automatic transmission drive shafts.

The company said that delivery to the Australian customer will start August 2013, and to BWA from January 2014.

Thanks to stable operation and profitability in 2012, Hota`s board recently decided to cancel issuing secured convertible corporate bonds in Taiwan.

David Shen, chairman of Hota, said that total global new-car sales dropped about 80 million units during the global recession from 2008 to 2010, hence impacting the auto-parts industry too. However, international automakers had began returning to full-capacity in 2011, creating strong demand for auto parts.

Hota had cumulative revenue of NT$2.8 billion (US$93.7 million) in the first 10 months this year, up 28.6% year-on-year (YoY). Shen said that the global auto-parts industry is expected to continue growing between 2013 and 2015, as long as the EU debt problems do not weigh too heavily on the global economy.

According to Shen, many automakers in China has stopped purchasing automotive transmission systems from Japanese suppliers to turn to Punch of Belgium, one of Hota`s major customers.