GSK Group celebrates 50th anniversary

Taipei, June 27, 2003 (CENS)--GSK Group, one of the largest auto and motorcycle parts manufacturing conglomerate in Taiwan, celebrated its 50th anniversary yesterday.

Group CEO Wu Chung-yi claimed that GSK generated revenue of over NT$21 billion (US$606.94 million at US$1:NT$34.6) from subsidiaries and affiliates in Taiwan and mainland China. The figure is expected to challenge NT$25 billion (US$722.54 million) this year, Wu added.

During the anniversary activity, President Chen Shui-bian visited GSK's headquarters in central Taiwan and praised the company for its leading role in the international auto/motorcycle parts lines, as well as for the company's policy to keep its global operations based in Taiwan.

Established in 1953, GSK started business as a small maker of minor bicycle parts and gradually diversified into auto/motorcycle parts and accessories in conjunction with the development of Taiwan's auto and motorcycle industries. Currently, the GSK Group has about 40 subsidiaries and affiliates around the world, including 16 in Taiwan and 20 in mainland China, with a total of about 2,600 employees.

GSK Group's major business scopes encompass production of motorcycle seats, shock absorbers, disc brake systems, frames, and key engine parts; and automobile seats, door trims, and steering wheels. GSK accounts for about 70% of the output in Taiwan in these segments and its production value accounts for about 7% of the domestic total. In the past years, the GSK Group has also diversified into the manufacture of computer components, furniture products and medical equipment.

In April this year, the GSK decided to take its subsidiary Fine Blanking & Tool Co., Ltd. Public on the Taisdaq (formerly over-the-counter) market, making the company the first group affiliate to be publicly listed in Taiwan. Fine Blanking, is currently one of Taiwan's largest makers of precision auto and motorcycle brake discs, gears, and auto seat recliners. The company registered a pre-tax profit of NT$114 million (US$3.29 million), or NT$4.03 (US$0.12) per share, in the first five months this year.

Wu claimed that Fine Blanking's public listing has greatly helped GSK's globalization efforts and enhanced the conglomerate's international reputation. He said that other group subsidiaries may be taken public in the future.

Wu predicted that his group would achieve its NT$25 billion (US$722.54 million) revenue goal this year, saying that the group's mainland Chinese deployment has been completed and is expected to generate significant growth momentum for the group.

The GSK Group is also big shareholder in the Taiwan-based Ting Hsing International Group, a leading food conglomerate in mainland China.