Great China Metal Raise Product Prices by 10%

To offset rising raw material prices, Great China Metal Industry Co., Ltd., Taiwan`s largest manufacturer of aluminum food and beverage containers listed on the Taiwan Stock Exchange, has raised product prices by 10% in both Taiwan and China.

C.S. Chiang, chairman and president of Great China, noted prices will be further raised if aluminum ingot prices continue on an uptrend.

The company`s affiliate in China—Jinan Union Co.—in Shandong province has recently launched mass production, helping the company to double annual output to 2.4 billion containers in China. The production expansion will help Great China to raise market share in China to over 20% to turn a profit in 2012.

Institutional investors predicted that Great China Group will register NT$6.184 billion in consolidated sales in 2010, up 12.45% year-on-year, with after-tax earnings per share to reach NT$2.4 in 2010.

Great China Group will likely post over 25% year-on-year sales growth with per-share after-tax earnings reaching NT$3.2 in 2011.

Chiang said his company`s production costs are mainly affected by the price volatility of aluminum ingots, for which the group pays US$2,600 per ton, up over 20% from the same period of last year. Faced with higher prices of aluminum ingots, labor and electricity, the company has no options but to raise product prices.

Chiang said his group aims to increase equipment utilization rate and after-tax earnings in China this year, with the Taiwan plant having exported 15% of output last year, and the proportion to exceed 20% this year. (CENS)