TECO Actively Implements and Invests in Smart Manufacturing and Digitalized Operation
Amid tumultuous global situation and volatile financial market, TECO, in addition to continuing to maintain a stable finance, will pursue strategic growth and enhance competitiveness, while actively investing in smart manufacturing and digitalized operation.
This was the outlook put forth by the group, Taiwan's leading motor manufacturer, during an online investors' conference on the afternoon of March 20, hosted by Sophia Chiu, chairman.
TECO reported that due to slowdown in Taiwanese and mainland Chinese markets, plus increasing competition from Southeast Asia, TECO's revenue dropped 4.4% to NT$47,909 million in 2019, when operating income, however, inched up 0.5%, thanks to higher gross margin for motor sales in North America and cost control at mainland Chinese plants. The company's board of directors has set cash-dividend payout of NT$0.99 per share, with dividend rate of 60%, for 2019, higher than corresponding figures of NT$0.9 and 56.6% for the previous year.
Smart manufacturing in full swing
TECO group's mainland Chinese plants in Wuxi, Qingdao, and Jiangxi already resumed operation on Feb. 10, now operating at over 90% capacity. The group also set up a global anti-epidemic commanding center in Feb., coordinating preparation for anti-epidemic materials and formation of related measures. Plus rapid adjustment of capacities, Q1 revenue is expected to remain at a rather normal level. The group's vigorous investments in smart manufacturing and digitalization in recent years has manifested its effect amid the novel coronavirus outbreak, enabling the smart electric-wire production lines in Chungli, Taiwan, to ramp up its output by 25%, taking up the slack caused by the disrupted operation of mainland Chinese plants. TECO plans to establish secondary supply chain for parts of automation-intelligence and electromechanical products outside mainland China, forming a remote backup network, to assure stable production of high-performance motors, according to Sophia Chiu.
Sufficient cash position and solid capital structure
Given continuous global trade frictions and frequent eruption of economic black swans, TECO will step up investments in distributed production and smart manufacturing, plus plan for accelerated digitalization, in order to pursue strategic growth, raise cost competitiveness, and increase supply-chain maneuverability. Sophia Chiu pointed out that amid the global economic volatility, TECO will continue to keep sufficient cash position and a solid capital structure, to respond to unexpected changes and seek sustained development.
Develop automation intelligence products and systems
In 2020, TECO will develop around the axis of "energy conservation, emission reduction, smart application, and automation," intensifying digitalization, marketing, and production automation, plus introduction of business intelligent (BI) systems, so as to sustain growth via precision marketing. It will set up a task force to push new products, including permanent-magnet electromechanical products, auto mechanical products, and medium-voltage inverters, plus application of IIoT technology in pushing solution sales. In addition, the company will roll out real-time maintenance/repair, technological modification, and service platform for customers. In medium- and long-term development plan, the company will focus on the development of automation intelligence, including application of industrial automation, applications of robots, knuckle system of collaborative robots, AGV, and 5G IoT controllers, via own R&D, strategic alliance, or strategic investment.
Automation at four production centers worldwide
To sustain growth in major regional markets and meet the need of distributed production, TECO will integrate resources for the establishment of four production centers in mainland China, Taiwan, Vietnam, and India worldwide. It will introduce key process automation and global business intelligence system, embracing digitalized management to coordinate the deployment of resources and supply chains of the production centers. For the sake of environmental protection and satisfaction of the strong needs for high-performance and electric-car motors in mainland China and Asia-Pacific, the company will continue investing in dedicated automated production lines for permanent-magnet motors and auto motors, plus application of AI in establishing product traceability system, so as to augment quality reliability and competitiveness of new products.