Kian Shen of Taiwan Partners With CCRE Group of China

Taipei, Jan. 7, 2011 (CENS)--Kian Shen Metal Works Co., Ltd., a major vehicle-frame maker under the Yulon Group of Taiwan, recently decided to set up a joint venture with the CCRE Group, the largest coach-bus production group in China.

The 50-50 venture, the Kinglong Kianshen Xiaoshan Co., is capitalized at US$60 million, will supply bus chassis and bodies to Xiamen King Long, a major bus maker under CCRE, as well as car frames to Dongfeng Yulon Motor Co., Ltd., a joint venture between Taiwan's Yulon Group and Chinese automaker Dongfeng to locally produce Yulon's LUXGENs in China.

Kian Shen said that Kinglong Kianshen Xiaoshan will have annual capacity of over 20,000 vehicle frame/chassis and over 200,000 units/sets auto parts. The new venture will begin plant construction in 2011 and mass production in 2012. The new Chinese subsidiary is expected to be profitable the first year, Kian Shen said.

Institutional investors said that some 324,000 buses were sold in China in 2010, up 28% year-on-year (YoY), and the annual volume is expected to increase at least 10% per year over next 10 years.

Kian Shen has already invested to set up four joint ventures in China, and the latest project is the largest that is expected to be a major moneymaker for the parent.