Aurona Industries,Inc.recently decided to move 70%of the production capacity at its phenolic resin laminate factory in Kunshan of mainland China back to Taiwan in light of the mainland's labor shortage and wage increase.
The company is investing NT$108 million(US$3.7 million at US$1:NT$29)to construct new factory in Taiwan to take over the production,which is crucial to drilling backup boards and insulting material for printed circuit boards(PCBs).The new factory is projected to come on stream on early next year.
According to Aurona executives,the Kunshan factory has been plagued by rising employee wage and labor shortage not to mention the 6%tax the mainland authorities impose on imported semi-finished products for the laminate production.These unfavorable factors and tax immunity the mainland authorities offer to imported finished products have inspired the company to embrace Taiwan again.
They said the company's factories on the two sides of the Taiwan Strait will maintain combined output of one million units of the laminate a month after the production shifting.
Industry executives pointed out that Aurona is the first Taiwanese PCB-related manufacturer to move production back to Taiwan after transplanting to the mainland.
They expected more of Taiwanese PCB manufacturers operating factories in the mainland to move production back to Taiwan given the mainland authorities have stopped issuing sewage discharge quota to PCB factories.
Aurona's combined revenue of NT$304 million(US$10.4 million)for last quarter hit four quarter high,with after-tax net income posting at NT$26 million(US$896,551).Its after-tax net income for the first three quarters this year amounted to NT$65 million(US$2.2 million),or NT$1.22 per diluted share,higher than NT$58 million(US$2 million)it made throughout last year.
Industry executives put the company's earnings at NT$2 per share for this year.
Aurona executives ascribed the company's increased earnings mostly to surge in production of patented laminates,which are estimated to account for 10%of the company's total revenue next year,up from this year's 5%.
