Kian Shen to Expand Production Capacities in China

Taipei, March 1, 2012 (CENS)--Kian Shen Metal Works Co., Ltd., the largest vehicle-frame manufacturer in Taiwan, recently claimed to be expanding capacity at both its factories in Guangzhou, Guangdong Province and Xiaoshan, Zhejiang Province, China, justifying such move because demand from affiliated Chinese automakers Dongfeng Yulon Motor Co., Ltd. and Dongfeng has outstripped its total capacity.

Kian Shen is a subsidiary of Taiwan's Yulon Group, the largest carmaker on the island.

By the end of 2012, Kian Shen said, the capacity expansion projects will raise its total capacity by a factor of 2.5.

In China, Kian Shen has reinvested in four affiliates, including Guangzhou NTN (original equipment, or OE supplier of drive shafts, bearings, constant velocity (CV) joints etc.), Fuzhou Fuhsiang (frame parts, metal parts), Xiamen Kinglong Kianshen Structure Products (bus frames), and Beijing NTN-Seohan Driveshaft Co., Ltd. (drive shafts).

Kian Shen said that rising demand from bus maker Xiamen Kinglong forced it to expand monthly capacity from 11,000 frames to 25,000, with the expansion expected to be completed in 2013. In Xiaoshan, Kian Shen's factory can hardly meet strong demand from Dongfeng Yulon and Xiamen Kinglong.

The vehicle-frame maker indicated that it is also looking for land in Zhengzhou, Henan Province to set up a new factory to meet Dongfeng's aggressive capacity-expansion project in Xiangfan, Hubei Province.

Kian Shen produces different auto parts at a rented factory in Xiaoshan, supplying affiliate Dongfeng Yulon, and the company is constructing a new factory next to Dongfeng Yulon's auto plant in the same city.

Dongfeng Yulon is a joint venture between Kian Shen's parent Yulon Group and Dongfeng to produce, sell Luxgens, a line of own-branded vehicles developed by Yulon.