SDI Receives Big Orders From U.S., Japan

Taipei, Oct. 5, 2005 (CENS)--SDI Corporation, Taiwan's leading stationery hardware manufacturer, has recently received large orders from clients in the U.S. and Japan, as a result of the firm sparing no efforts to develop new stationery items including correction tapes, easily operated staplers, staple removers, and cutter knives.

Stationery hardware and lead frames are SDI's two major product categories; the former accounts for 30% of the company's revenues, while the latter makes up the remaining 70%. Today the company runs businesses on both sides of the Taiwan Straits. In the first eight months of this year, SDI's plant in Taiwan raked in NT$2.23 billion (US$65.59 million at US$1 = NT$34) in revenues, and its plant in mainland China generated some 30 million renminbi (about US$3.75 million).

In addition to marketing products under its own ‘SDI' brand, the company has also turned out products on an OEM and ODM basis, mainly for its clients in Japan, Europe and the U.S. SDI's correction tapes, for example, have recently made inroads into the market in Japan. In addition, Japan's leading stationery manufacturer is one of SDI's major clients, and another noted Japanese stationery firm has also started to place orders with SDI. This year the company is predicted to turn out more than five million correction tapes to meet market demands.

To maintain its strength in the market, SDI has developed more sophisticated and innovative stationery products, and its newly developed, easily operated staplers and remodeled cutter knives are quite popular among students and office workers.

A renowned U.S. retailing chain is planning to place orders with SDI for its mechanical punchers. For the upcoming orders, SDI is now building molds for the punchers, and is slated to deliver the products to the U.S. firm starting at the end of the year. Shipment volume is estimated at some one million units per year.

SDI has seen monthly revenues soar to NT$90 million (US$2.65 million) for its stationery products, and the figure is very likely to expand to NT$100 million (US$2.94 million) in the near future. The company disclosed that it has in recent years enjoyed an annual growth of 10%-15% in revenues from its stationery department, while the net profit rate of its stationery products ranged from 18% to 20%.