TRIO IND ELEC's new factory in the UK will be operational this season and will seek new energy projects in Thailand and Indonesia
TRIO IND ELEC will activate its new factory in the UK this season and plans to seek new energy projects in Thailand and Indonesia. Despite facing the tariff war from the United States, the group has globalized its production capacity, and the factory in Thailand has not been affected, primarily supplying American customers. In terms of new energy business, the charging station in Kazakhstan has generated revenue, and the assembly plant for autonomous heavy trucks in Uzbekistan is expected to start construction in the second half of this year, with an investment of approximately 20 million USD. The group hopes to attract investment from state-owned enterprises and expects the new energy business to be profitable within three years
In the face of the new round of tariff wars initiated by the United States, Trio Industrial Electronics (1710) Chief Financial Officer Liang Dehao (pictured) stated that the group has globalized its production capacity. In addition to the current factories located in Nansha, Guangdong, Thailand, and Ireland, a new factory will also be established in Leicester, UK this season. However, he emphasized that there are currently no plans to set up a factory in the United States.
Reporter: Cai Qiwen
Liang Dehao mentioned that the new factory in Leicester belongs to an existing customer, and after the company takes over the factory, the related production capacity will mainly be used to supply that customer. Although the tariff war has begun, he pointed out that since Thailand has not been affected by the additional tariffs imposed by the United States, the local production capacity is mainly supplied to customers in the United States.
Regarding orders, Liang Dehao stated that after customers completed inventory reduction in the second half of last year, orders have gradually resumed since the beginning of this year. Although some customers have requested price reductions, due to the high-end manufacturing nature of the group's products, it is not easy for customers to switch suppliers, so there is limited room for price reductions.
In addition, regarding the new energy business, Liang Dehao stated that the three charging stations located in Kazakhstan have generated revenue since their opening in the fourth quarter of last year.
Liang Dehao also indicated that the assembly plant for unmanned heavy trucks used for mining transportation, located in Uzbekistan, is expected to start construction in the second half of this year, with a target completion by the end of this year and an investment amount of approximately 20 million USD. He mentioned that the group intends to introduce other investors for the aforementioned project, targeting state-owned enterprises, aiming to share the capital expenditure of the related projects.
He hopes that the new energy business can generate profits within three years, and once the new energy projects generate a certain cash flow, they will promote e-commerce businesses related to new energy, targeting the Central Asian market.
As for expansion in Southeast Asia, Liang Dehao stated that discussions are ongoing with Thai companies regarding photovoltaic and energy storage equipment, as well as discussions on electric vehicles and charging equipment projects in Indonesia. (Reporter: Kuang Weixuan)
