Lee Chi (Promax) To Boost Production with New Plants in Indonesia and Vietnam
CHANGHUA, Taiwan – Lee Chi Enterprises Co Ltd that makes braking, cockpit, drivetrain and MTB parts under the Promax brand, is planning to build new plants in Indonesia and Vietnam. The company’s revenues showed a close to 6 percent growth in the first five months of the year and forecasts an even better result in the second half of this year as higher demand for e-bike parts are to bring extra growth momentum. With the new plants Lee Chi also looks to diversify into the automotive and scooter industries.
According to a recent Taipei Times report Lee Chi plans to increase its capital expenditure this year by 5 to 10 percent for the new plants and to increase its production. The company that saw its revenues grow by 5.8 percent in the January to May 2019 period to TWD 1.24 billion (35.2 million euro), has developed power-off brakes for electric bikes. A leading Japanese automobile company began sourcing products from Lee Chi earlier this year.
‘Well rounded supply chain’
For growing its production as well as to achieve “A more well-rounded supply chain and for avoiding U.S. tariffs,” said a Lee Chi spokesperson to the Taipei Times, the company is to increase its capital expenditure this year by 5 to 10 percent. While the Lee Chi official did not specify an exact figure, the company’s annual financial report showed that it last year spent TWD 69.04 million (2 million euro) on expanding its manufacturing facilities and buying new equipment, meaning capital expenditure this year would be between TWD 76 million (2.2 million euro).
Lee Chi currently operates two facilities in Taiwan and one in Kunshan, China.