Private Firm Formed to Tap Military Logistics Business

Taipei, Feb. 15, 2008 (CENS)--To tap the huge business opportunities connected with repair, maintenance, and components/parts supply for military equipment, a private company christened "Dazhen Co." was established on Jan. 28.

The company will cooperate with foreign military suppliers, capitalizing on industrial cooperation programs pledged by the latter in securing military-equipment contracts from the military.

The company has been established in the form of a private company, although the government apparently will have control of its operation.

Wu Wei-jung, director of the Armaments Bureau, under the Ministry of National Defense, reported that the military will invest NT$90 million for 45% stake in the company after obtaining approval of the Legislative Yuan.

China Steel Machinery Corp. a subsidiary of China Steel, and Chunghwa System Integration, a subsidiary of Chunghwa Telecom, have contributed NT$50 million and NT$30 million of capital, respectively, to the company. China Steel and Chunghwa Telecom are both private firms, with the government owing controlling stakes in them, though.

Wu Nai-jen, a veteran member of ruling DPP (Democratic Progressive Party) and former chairman of Taiwan Stock Exchange, has been appointed as chairman of Dazhen. Wu, though, pointed out that he would quit the position after swearing in of the new president on May 20.