Fu Sheng acquires PAP unit of the U.S.-based Elliott

Taipei, Oct. 6, 2003 (CENS)--Fu Sheng Industrial Co., Ltd., Taiwan's largest manufacturer of air compressors and golf heads, recently announced acquisition of the plant air package (PAP) unit of the U.S.-based Elliott Turbomachinery Company.

Based in Pennsylvania State, Elliott is a member of Japan's Ebara Group. The company is a global leader in design, manufacture, installation and service of turbomachinery including air and gas compressors, steam turbines, power recovery turbines, bow thrusters, and power generating equipment.

Since its establishment about five decades ago, Fu Sheng has only concentrated on the production of small-sized reciprocating-type and medium-sized screw-type air compressors.

With the acquisition of Elliott's PAP unit, Fu Sheng has entered the large-sized air compressor production field and obtained the capacity to develop a full line of air compressors, from small to large-sized ones. To enhance its competitiveness in mainland China market, Fu Sheng has also acquired a 50% stake in a Shanghai-based joint venture company between Fu Sheng and Elliott.

Fu Sheng said the acquisition of the PAP unit will help it obtain enough manufacturing technology and capacity to develop a full package of air compressors. Also, the acquisition will help it further develop the markets in the U.S., Europe and the Middle East.

Fu Sheng is reluctant to release detailed value of the acquisition, only saying it would be able to enter the production of large-sized air compressors with 400 up to 2,000 horse power. Thanks to the deal, Fu Sheng also obtained the customers in Elliott's overseas markets. Still, Fu Sheng will distribute these large-sized air compressors under the 'Elliott' brand.

Originally, Elliott's PAP unit mainly sold large-sized air compressors in the U.S., Europe and the Middle East. From now on, Fu Sheng will extend sales of the products to Asia. Likewise, Fu Sheng will promote its existing product lines to Europe and the U.S.

Fu Sheng scored NT$3.29 (US$0.09) earnings per share in the first half of this year. Thanks to the sharp surge in sales of golf heads, the company raked in record revenue of NT$895 million (US$26.47 million) in August alone. An institutional investor estimated the company will record NT$5.65 (US$0.16) in EPS this year.