Kian Shen Joins Hino's Supply Chain of Heavy-duty Vehicles in China

Taipei, April 30, 2012 (CENS)--Via cooperation with Japan's chassis frame maker Takebe Tekkosho, Kian Shen Corp., a Taiwanese truck frame and chassis parts manufacturer affiliated with Yulon Group, has indirectly tapped the supply chain of Hino's buses and tractor trucks in China.

Kian Shen, in fact, has built close business ties with Takebe Tekkosho, which is a supporting manufacturer for Japanese heavy-duty vehicle suppliers, including Hino and Fuso, for a time. The dies and truck frames produced by Kian Shen have been imported by the Japanese partner or re-exported to southeastern Asian countries as Thailand.

To coordinate with Hino's move to set up a production plant in Guangzhou, southeastern China, Takebe Tekkosho has recently decided to increase its purchase of various vehicle frames from Kian Shen to 3,000 units per year initially, which, roughly worth over NT$20 million, will be partly destined to Hino's Guangzhou plant and contribute considerably to Kian Shen's business growth in the short term.

After becoming part of Hino's supply chain thanks to Takebe Tekkosho, Kian Shen confirmed that it won't rule out the possibility of further reinforcing its business cooperation with Takebe Tekkosho in China market and extending it to the ASEAN (Association of Southeastern Asian Nations) market in the future.

Another good news for Kian Shen is that the company has recently been contracted by Yulon Motor to supply chassis and car body parts for use in Luxgen sedans produced in Taiwan and China on an exclusive basis.

Kian Shen is building a new plant in Hangzhou, eastern China, which will supply to not only Tongfeng Yulon locally but also the Taiwanese market. Accordingly, the new plant is scheduled to be completed by the end of this year and operational early next year, which will surely help the supplier to leverage its competitive advantages in the line in Taiwan and China.