With the sweep of the Covid-19 pandemic coupled with the significant achievements of newly-increased capacity put onto the market, Wu Jia-Chao — chairman of Nan Ya Plastics — has indicated that the performance for the first half of the year is "hardly slack though in slack season". The reasons being that some parts of electronic materials have benefited from the new demands for 5G infrastructure and the push by company initiatives for remote work. Nan Ya will strive wholeheartedly into the electronic materials business to support the company operations.

        Chairman Wu Jia-Chao has analyzed the operation status of the group’s major businesses. Regarding the chemical industry, it was found that there is a large-scale expansion of production capacity from trade peers, hence excessive supply to the market renders a decline in product prices.

 The two major chemical products of Nan Ya are ethylene glycol (EG) and Bis-phenol A (BPA). Prices for these products fell by 30% last year when compared to those of the previous yearly performances. This has considerably diminished the company’s profit margins. Added to these woes was the outbreak of the Covid-19 pandemic, at the very start of the year, which worsened the market conditions. As a result of these factors, the performance statistics for the three major product industries — chemical industry, plastics processing, and polyester — of Nan Ya has changed from the traditional peak season into an unusually slack one even though it’s supposed to be in booming season.

          Surprisingly, the performance figures for electronic materials were expected to be rather slack in the first half of the year, yet the performance "continues to boom although in a slack season."

 Wu Jia-Chao pointed out that consumer electronic products are still affected by the epidemic, while the construction of 5G infrastructure continues to speed up as the epidemic continues to drive remote-office working trends.

 As such, many people have purchased information products in the form of computers and network equipment, which has triggered the demand for copper clad laminate (CCL) and other electronic materials supplied by Nan Ya.

The demands placed on the Nan Ya PCB plant (a subsidiary of Nan Ya) are found to be growing in strength and intensity.

 

          Wu said that Nan Ya will promote a variety of electronic-material products and upper-stream raw materials. This is set to increase the sales proportions of medium and high-end materials for niche products that possess high added-value and high-functionality. Besides this, Nan Ya will also make use of its comprehensive advantages from the vertical upper-stream and downward-stream integration to flexibly manage the production capacity across the Strait of Taiwan and the mainland. This will help to bump up revenue and profit margins. (News source: Economic Daily News)