Sanyang Wins Syndicated Loan of NT$3.6 B.

Taipei, July 6, 2006 (CENS)--The Sanyang Industry Co., Ltd., which manufactures SYM own-brand powered two-wheelers (PTWs) in Taiwan, Vietnam and Indonesia, as well as some Hyundai car models, has recently won a five-year syndicated bank loan of NT$3.6 billion (US$110.4 million at US$1: NT$32.6) from 11 banks at an annual interest rate of 3.747%.

This is Sanyang's first syndicated-loan project in its 50-year history.

Sanyang chairman Huang Shih-huei pointed out that over the past 50 years his company has enjoyed abundant funds for developing related businesses, but now the group has to get more funds to support its business internationalization and expansions.

Sanyang vice president Jiang King-yong said that his company would utilize the funds mainly to improve corporate financial structures and enrich its operating capitals. Jiang said that a certain part of the syndicated loan would be used to repay the firm's previous loans to save at least NT$40 million (US$1.22 million) in annual interest payment.

Sanyang president Huang Kuan-wu pointed out that his company has been experiencing rapid business expansions, all requiring intensive capital injections. In the past few yeas, Sanyang's major business achievements included winning a Taiwan government bid to supply 4,788 military trucks, investing in mainland China-based Xiamen Golden Dragon Van Co. Ltd., investing in Indian PTW maker Kinetic, setting up a new PTW plant in Indonesia, and establishing the Vietnam Manufacturing Export Processing Co. Ltd.

Established in 1943, Sanyang is currently the only local company that can simultaneously produce PTWs, trucks, passenger cars and commercial vehicles. Sanyang's Indonesia PTW plant is scheduled to begin production of one or two 125cc scooter models in 2007, and its VMEP 1,300cc commercial vans in the same year.