Taiwan-based CCL makers have expressed uncertainty about their first-quarter revenues as the coronavirus impacts on customer orders and the supply chain can hardly be assessed at present, and Elite Material (EMC) and Iteq, with higher ratios of production capacity in China, are likely to be more negatively affected than others, according to industry sources.
EMC now operates three production bases in China: respectively in Kunshan, Jiangsu province, in Zhongshan, Guangdong province and in Huangshi, Hubei province - the epicenter of the epidemic. But the company said ratio of revenues from its newly constructed plant in Huangshi is not too high to affect much its overall revenue performance, and its business prospect will hinge on changes in the entire supply chain after manufacturing operations resume in China.
Maintaining production lines in Guangdong, Jiangsu and Jiangxi provinces and without operations in Hubei province, Iteq has seen no significant impact of the outbreak on its business, and is actively adjusting its production workforce seeking to maintain shipments to clients.
Taiwan Union Technology (TUC) is sustaining low capacity utilization at its plants in Jiangsu and Guangdong with employees staying there during the Lunar New Year holidays. But as its new capacities are concentrated in Taiwan, the company also sees limited impact of the epidemic.
Industry sources said the makers will see clearer order prospect in late February or early March, when the impacts of the outbreak should be better assessed.
EMC saw its January 2020 revenues rise 6.58% on year to NT$1.964 billion (US$65.29 million); Iteq's revenues for the month dropped 15.6% on year to NT$1.61 billion; and TUC raked in revenues of NT$1.416 billion in January, edging up 0.26% from a year earlier.
Article translated by Willis Ke
