Kian Shen Reports Good Returns from Chinese Subsidiaries

Taipei, Jan. 12, 2010 (CENS)--Thanks to good returns from operations in China, Taiwan-based vehicle-frame maker Kian Shen Metal Works Co., Ltd. is expected to post remarkable profitability in its 2009 operation.

Kian Shen is currently the largest vehicle-frame maker in Taiwan, established in 1955 and owned mainly by automaker China Motor Corp. (44.87%), and Kuozui Motors Ltd. (32.94%).

To meet flooding orders in China, Kian Shen recently decided to invest NT$312 million (about US$9.6 million) to set up one new production line at its plants in Guangzhou, Guangdong Province and two new lines at the factory in Fuzhou, Fujian Province.

S.C. Chen, chairman of Kian Shen, claimed that 2009 was the most lucrative year in company history.

Currently, Kian Shen operates several production bases in China, including facilities in Fuzhou, Guangzhou, and Xiamen (Fujian Province). Guangzhou NTN-Yulon Drivetrain Co., Ltd. is the major moneymaker in China, supplying parts to mainly Dongfeng and Beijing Hyundai.

In Fuzhou, Kian Shen's busidiary Fuzhou Fu Shiang Motor Industrial Co. Ltd. supplies products mainly to South East (Fujian) Motor Co., Ltd. (SEM), which enjoyed clear sales gains in 2009 thanks to the launch of the hot-selling V3 sedan.

According to Chen, Kian Shen's Taiwan operation used to focus on truck frames, but now has shifted to commercial-vehicle and passenger-car chassis, accounting for 37% of the firm's revenue.