Taipei, May 8, 2008 (CENS)--To achieve the effect of vertical integration, Tongtai Machine & Tool Co. has recently spent NT$28 million (US$921,050 at US$1:NT$30.4) to acquire a 70% stake in Chin Jig Precision Machine Co. which is Taiwan`s leading manufacturer of jigs and fixtures for machinery.

Tongtai hopes it would make use of Chin Jig`s expertise in jig and fixture to create higher-quality machine tools. In addition, Tongtai will be able to access mainland China`s jig and fixture market via Chin Jig`s well-established distribution channel there.

With the stake acquisition, Tongtai has taken up Chin Jig`s board seats of two directors and one supervisor out of the total seats of three directors and one supervisor. Despite the majority in the board seats, Tongtai still keeps the original management of Chin Jig and fully authorizes the original management team to develop its profession.

Tongtai stressed its investment in Chin Jig would help it secure investment gains as the latter is a profitable firm with sound business nature.

After acquiring Chin Jig, Tongtai will access critical technologies for designing precision jigs and fixtures, thus helping it shorten the R&D time in developing innovative machine tools.

In addition, Tongtai will be able to access Chin Jig`s old customers in both Taiwan and mainland China, which will help it boost markets shares across the Taiwan Strait in an effective way.

Tongtai firmly said Chin Jig will continue to see growth in sales and earnings in the next few years. Accordingly, Tongtai will be able to realize handsome profits from investing in the jig and fixture manufacturer in the years to come.

(by Ben Shen)