Taiwan's auto-parts makers win biz opportunities from military-truck bid

Taipei, May 31, 2005 (CENS)--A bidding team formed by Taiwan's Sanyang Industry Co., Ltd. And International Truck and Engine Corp. (ITEC) of the U.S. recently won a government bid and is expected to release over NT$3 billion (US$95.54 million at US$1: NT$31.4) worth of business opportunities to local auto-parts makers.

The Sanyang-ITEC team will supply 4,788 military trucks to the Ministry of National Defense (MND) in the coming five years, and such trucks should have a local content rate of 30%/ Some local auto-parts makers have been actively contacting Sanyang for possible parts-supply business, including TYC Brothers Industrial Co., Ltd. (Taiwan's largest auto-lamp exporter) and Kian Shen Corp., No. 1 truck-frame maker in Taiwan.

The government project requires the winning bidder to supply the first batch of 643 military trucks by the end of the year with a local content rate of 30%.

TYC has announced that it won a five-year truck-lamp supply order from Sanyang, which is expected to bring additional revenue of over NT$40 million (US$1.27 million) to the company.

Kian Shen claimed that it is the only local maker of over-3.5 ton truck frames and chasses and is expected to win sub-contract orders from Sanyang.