Chin Fong to invest NT$2 B. to set up plant in Taichung Harbor area

Taipei, Dec. 17, 2003 (CENS)--Chin Fong Machine Industrial Co., Ltd., Taiwan's largest manufacturer of pressing and stamping machines, recently signed an accord with the Taichung Harbor Bureau under the Ministry of Transportation and Communications (MOTC) to set up a heavy-duty machinery plant and headquarters at a 19-hectare site in the Taichung Harbor area.

The pact was signed by C.B. Chi, chairman of Chin Fong and Hsieh Ming-hui, director of the Taichung Harbor Bureau. Present at the signing ceremony included Tsai Duei, deputy minister of the MOTC; Liao Yung-lai, CEO of the Executive Yuan's joint services center in central Taiwan; Huang Chung-sheng, Taichung County magistrate; P.C. Chang, chairman of Taiwan Provincial Commerce Association, and 200-strong representatives from various sectors.

Chin Fong will build the new facilities in four stages. The first three will focus on capacity for making pressing machines, heavy construction machinery, and a warehouse. A tunnel excavator plant will be established in the fourth stage.

The company said it would invest NT$2 billion (US$58.82 million at US$1:NT$34) to complete the project, including a heavy-duty machinery plant, a bonded warehouse on piers42 and 43 and their back-line lots at the Taichung Harbor. The will be the first investment case launched at the Taichung Harbor area in accordance with the statute for promoting private participation in public construction projects.

Tsai Duei said the statute has not only encouraged domestic enterprises to keep business roots in Taiwan but has also met the government policy of expanding infrastructure construction. He encouraged Chin Fong and Taichung Harbor Bureau to collaboratively create a beautiful future.

The investment project will provide 1,000 job opportunities and help Taichung Harbor increase loading/unloading capacity by 300,000 metric tons per year.

Thanks to the continued growth of the automobile industry, Chin Fong has been enjoying substantial sales growth in sales this year. The company said it posted NT$2.35 billion (US$69.11 million) in sales in the first 11 months of the year, up 20% from the same period of last year. The company boasted it still has a backlog of orders valued at NT$400 million (US$11.76 million).

Chin Fong is scheduled to begin trading on the Gre Tai Securities Market (or over-the-counter securities market) sometime in February next year, and will apply for listing on the Taiwan Stock Exchange in May.

The company's investment project at the Taichung Harbor area was instigated by Premier Yu Shyi-kun when he paid a visit to Changpin Industrial Zone, central Taiwan on April 14, 2002. Originally, Chin Fong wanted to set up the new production facilities in the Changpin Industrial Zone. In consideration of the transport convenience, Chi accepted Yu's suggestion to relocate the investment project to the Taichung Harbor area.

Chi stressed the investment project will bring his company into the heavy-duty industry. In the future, Chin Fong will shift to produce ultra-high-duty production equipment, including 6,000-ton multi-station automated pressing machines, over 5,000-ton cold-, hot-forging machines, etc.

To increase production of heavy-duty machines, Chin Fong has cooperated with Japan's Ishikawajima-Harima Heavy Industries Co. to set up a joint venture called IHI-Chinfong Press Engineering Co., which is positioned as the global logistics center of both parties. The venture will make Taichung Harbor a base for the production of heavy-duty pressing machines.

Headquartered in Changhwa City, central Taiwan, Chin Fong has branches in Malaysia, Thailand and Indonesia and plans to set up an affiliate in mainland China. With paid-in capital of NT$1.29 billion (US$37.94 million), the 56-year company expected to see revenues, including those generated by subsidiaries, reach NT$4 billion (US$117.64 million) this year and challenge NT$5 billion (US$147.05 million) next year.