Taipei, Dec. 22, 2012 (CENS)--To tap China’s domestic market, Wei-Chuan Food Corp., a leading Taiwanese foodstuff firm, plans to expand its existing factory in Hangzhou and build new factories in Beijing and Guangzhou, as a result of which the sales of its mainland-China operation is expected to jump 50% to near NT$10 billion next year and surpass the revenue of its Taiwan operation by 2015.
A member firm of Ting Hsin International Group, Wei Chuan has been aggressively foraying into the mainland Chinese market in recent years, selling refrigerated dairy products, fruit juice, salad sauce, and bread, notably to Shanghai and Hangzhou.
Wei Ying-tsung, chairman of Wei Chuan, pointed out yesterday (Dec. 21) that the company will expand its Hangzhou factory next year, as its refrigerated production line is running at full capacity after its launch in June this year. In addition, the company will build production bases in Beijing and Guangzhou, thereby boosting the revenue of its mainland operation to a level higher than Taiwan by 2015.
Wei Chuan China racked up revenue of 1.3 billion yuan (NT$6 billion) in the first 10 months this year, which is expected to hit NT$7.3-7.5 billion for the whole year.
Wei Chuan has invested US$100 million (NT$2.9 billion) in building a refrigerated drinks factory in Hangzhou, mainly for producing refrigerated drinks, such as fruit juice, lactic acid bacteria, yogurt, and coffee. The factory has doubled the capacity of Wei Chuan’s refrigerated drinks in China following its inauguration in June.
Wei Ying-tsung noted that the company is sparing no effort in expanding its capacity in mainland China. Thanks to booming sales of refrigerated drinks, the revenue of the company’s mainland operation has jumped 30% this year and the growth rate will hit 50% next year.
In view of the market potential for refrigerated drinks in the mainland, the company will construct the second refrigerated factory in Langfang of Hebei Province, near Beijing, which will be launched in 2014.
Tingsheng Food, a joint venture of Wei Chuan and Pasco, Japan’s second largest bread firm, has become the second largest bread factory in Shanghai, supplying to FamiMart convenience-store chain and other outlets in China.
