Industry dynamics
Largan has closed its Suzhou factory in China! "11 billion yuan of funds" repatriated to Taiwan to expand the factory, and the production center is rooted in Taichung  2020/05/27
Reporter Yang Luoxuan/Taipei Report
"The king of shares" Largan (3008) has focused its production and R&D on Taiwan in recent years. In the second half of 2019, it will end its Suzhou plant in China and leave its Dongguan plant. In response to the need to build a new plant in Taiwan in the next four years, it will complete overseas remittances of more than 11 billion. Yuan funds, especially in the first April of this year, the total cost of building factories and contracting factory works was about 4 billion yuan. Largan's production focus gradually moved back to Taiwan, and at the same time, it responded to the Taiwanese businessmen's investment plan for returning to Taiwan.
Largan currently has 13 factories in Taiwan, and China has its Suzhou factory and Dongguan factory. Since 2014, it has been actively hunting and expanding production. In the Taiwan factory, 9 of the 13 factories in Taichung are owned and 4 are leased; on the other hand, due to the focus of resource integration, Largan confirmed that it will close its Suzhou factory in China in the second half of 2019.
For the repatriation of funds, Largan announced on December 25, 2019 that it would repatriate US$365 million (approximately NT$11 billion) from its subsidiary ASTRO’s surplus distribution, which was mainly used for the construction of a new factory in Taiwan; Largan also previously bought 3 plots of land in Taichung Industrial Park, totaling approximately 15,100 square meters.
Among the three pieces of land that Largan has purchased, 4,200 square meters of land in Xitun will build a new plant in the first half of this year, and mass production will be completed as soon as 2023; construction of 7,400 square meters of land is expected to start in the second half of this year; as for another piece of 3,500 square meters of land still If there is a lease, it will be left to start construction in 2021.
In addition, according to the plant engineering information released by Largan in January and April this year, the construction of the plant and the contracting of the factory from the prefectural committee totaled about NT $ 4 billion, which were gradually paid according to the progress of the project. Largan has expanded its investment, hunting for land and rushing to buy equipment. The next big leap in revenue seems to have to wait for full utilization of production capacity.
The multi-lens trend is taking shape, China's production costs are gradually rising, and the contribution of China's bases is getting lower and lower, Largan has considered staying in Taiwan to improve its quality. With good preparation for the layout, the Dongguan factory in China, which is used to produce glass lenses, is also highly demanded. Outsiders believe that if Largan disposes of the Dongguan factory, it means that it will withdraw from the glass lens market.
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Original URL: Largan has closed its Suzhou factory in China! "11 billion yuan of funds" repatriated to Taiwan to expand the factory, the production focus takes root in Taichung | ETtoday Finance | ETtoday News
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