Taipei, July 4, 2012 (CENS)--Hon Chuan Group, one of the largest maker of beverage packing products in Taiwan, has set up an independent market development department to actively tap the beverage packing materials market in Japan. It is estimated that the orders from Japan will bring the company NT$ 700~800 million (US$ 23.33~26.67 million) in revenues this year, accounting for 10% of its total revenues, up from 5% seen last year.
S.C. Tsao, chairman of Hon Chuan, pointed out that the company received beverage packing material orders transferred from Japan after the devastating earthquake hit Japan on March 11, 2011 and undermined production operation of Japanese beverage packing material suppliers. Those orders originally lasted for only six months or a year, but some of the temporary orders placed by Japanese clients last year have become regular ones this year, due to the company's stable shipment.
Optimistic about the beverage packing market potential in Japan, Tsao said that Japanese beverage manufacturers have been seeking packing material suppliers outside the country after the earthquake, and Hon Chuan has grabbed the opportunity to expand its business to Japan. The company's major clients include Coca Cola, Master Kong, and Pepsi; and now its cooperation with Japanese beverage makers has helped it gain a preliminary market share in Japan.
The company set up two new aseptic beverage packing materials manufacturing plants in Taichung, central Taiwan earlier this year, which started official run in the first quarter to supply packing cans mainly to Coca Cola and some beverage makers in Japan. It is estimated the company's exports to Japan may reach NT$ 700~800 million (US$ 23.33~26.67 million) this year.
After the March 11, 2011 earthquake, many local beverage packaging companies in Japan suffered from the rising electricity costs, making them actively look for more affordable packages supplies overseas. And Hon Chuan has got the chance to enter the market in Japan.
An institutional investor analyzed, Hon Chuan's orders from Japan accounted for only 5% of its revenues last year, but the orders generated higher gross profit rate than domestic orders. If Hon Chuan can obtain more orders from Japan this year, the firm's profits will be significantly boosted. The company estimated its annual revenues and profits to surge this year, with earnings per share (EPS) to reach NT$ 5.2 (US$ 0.17).
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