Fair Friend Group Teams Up With Machinery Firms in Beijing

Taipei, Dec. 7, 2009 (CENS)--Fair Friend Group, Taiwan's largest conglomerate of machine tools, has recently signed strategic alliances with Beijing-based two machinery works, including Kaijieli Group and Beijing No. 1 Machine Tools Works, showing the machinery industry across the Taiwan Strait has turned a new page, shifting from competition to cooperation.

The annual sales scored by Fair Friend, Kaijieli and Beijing No. 1 Machine Tools aggregated approximately NT$35 billion (US$1.08 billion at US$1:NT$32.2) in 2008.

Fair Friend chairman Jimmy Chu said the joint venture will bring in an advantageous complement for each sides of the three partners. Beijing No. 1 Machine Tools has established solid foundation in fabricating large-sized special-purpose machine tools and Fair Friend is noted for its strong international marketing ability.

With annual output of 5,800-strong metal-forming and metal-cutting machine tools in 2008, Fair Friend is poised as the largest manufacturer of full-functional CNC (computerized numerically controlled) machine tools across the Taiwan Strait.

Fair Friend is expected to apply to the Taiwan Stock Exchange (TWSE) for floating TDRs (Taiwan depository receipts) on domestic bourse. If everything goes smoothly, the firm will be able to list TDRs on the TWSE sometime in the second quarter of 2010.

With annual sales amounting to 2.8 billion renminbi in 2008, Beijing No. 1 Machine Tools specializes in the production of large-sized double-column machine tools, machining centers and milling machines. Based in Fujian province, Kaijieli has a wide range of business scopes, including machinery, imports and exports, logistics and realty development. With sales reaching two billion renminbi in 2008, the company ranked first in sales of either medium- and small-sized electricity generators and variable-speed milling machines.

On other front, Teco Group, one of Taiwan's leading manufacturers of heavy-duty electric machinery, has announced it would cooperate with a China-based windturbine maker to set up a joint venture in China, aimed at developing large-sized windturbines suitable for use in both Taiwan and China.

Teco chairman C.K. Liu estimated the business opportunities generated from the coastal area of Fujian province and the west coast of Taiwan will reach NT$2.4 trillion (US$74.53 billion) based on the projection that the installed capacity in the above-mentioned area will reach 8,000 windturbines, each costing NT$300 million (US$9.31 million).