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TPA Newsletter- Jun 11, 2010

TPA newsletter > TPA vigorously to increase investment on factory expansion and to explore Taiwan market, with a doubling capacity

It’s reported that a vast of old LPG cylinders flood in Taiwan market, among these old cylinders that over 20 years excess 59%, and over 30 years even more than 3 million pcs. Furthermore, LPG cylinder inspection and periodic test did not really play much in the past, seriously affected the consumer safety and makes the old cylinder just like an irregular bomb threatening the life of people every moment.

In 2010, Taiwan administrative departments such as Taiwan Fire Service Department and etc. have put forward many regulations and requirements step by step to enforce the inspection on the fair trade of LPG cylinders and management of the market circulating cylinders and cylinder valves, as well as a more clear and strict regular inspection mechanism, which have made a contribution to an vast wave of acceleration in eliminating unqualified and dismissed cylinders and valves in Taiwan market, and also the forecast of new cylinder demand will rise to an amazing number that is 400,000 pcs per a year.

Under this situation, TPA not only stabilizes overseas order demands, but also aggressively explores the huge domestic LPG market, and maintains the balance between the capacity and demands. In 2009, the market share of TPA (Taiwan Paoan) has reached 30% in the whole Taiwan cylinder market and it keeps on growing fast and stable. Moreover, to meet a rising demand in Taiwan market, in this July, TPA will continue to make investment in expanding its production facilities and enhancing the total capacity to 2.5 million pcs annually, of which the three-piece cylinder (16kg, 20kg) capacity supplied for Taiwan market is expected to reach 50,000 pcs per month and that will be realized since this September.

TPA has powerful R&D capabilities, as well as outstanding product quality, taking the Taiwan market for example, TPA has successful utilized a more advanced and secure high-grade steel SG295, and brought in about 3 kg weight reduced every size cylinder, which not only relief the hard work for transportation, but also cut down the terminal distributors' freight expenses. Besides, TPA cylinder safety authentication covers all over the world, such as America DOT, Canada TC, Australia AGA, European Union TPED, New Zealand ERMA, and South Africa LPGSASA. With these strong points, order demands from our global partners like Shell, SHV etc. have been almost doubled, compared with that of the same quarter last year.

Obviously, in the Taiwan LPG cylinder industry, responsibility lies in TPA would be more heavy and significant with a long road to forward. As the fulfillment of production capacity expansion in 2011, the LPG business of TPA is sure to continue growing stable and solid. Meanwhile, we are also expecting a fast progress in ECFA (Economic Cooperation Framework Agreement), and hope that will bring the pressure container industry entering the Agreement sooner, and also will push the tariffs cutting process on cross-strait trades and benefit broad consumers like families and stores directly. And the beneficiaries not only in the price, but can also accelerate the pace of the old cylinder replacement in the market; hence better guarantee the public security!

TPA Metals and Machinery (SZ) Co., Ltd.
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