Chiao Fu to break ground for headquarters in eastern China in Sept.

Taipei, Aug. 19, 2004 (CENS)-- Chiao Fu Enterprise Co., Taiwan's leading manufacturer of polyurethane (PU) & products, is to break ground next month for its eastern China headquarters in Jiangsu Province.

With an estimated investment of US$25 million, the projected headquarters, occupying a land area of 45,000 pings (1 ping = 36 sq/ft), will include a PU foam plant, a plastic material plant for auto vehicles, and a related processing & assembling plant. And the entire project is scheduled to be completed in 2006.

Last year Chiao Fu strategically allied with Bridgestone Corporation of Japan to jointly set up a plastics plant in Guangzhou of Guangdong Province, dubbed as Bridgestone Chiao Fu Plastics (Guangzhou) Co., to supply the products to the increasing auto manufacturers there, mainly for Honda and Toyota.

Mainland Chinese authority has recently approved an application filed by Honda Motor Co. to set up a new plant in Guangzhou, which is slated for completion sometime next year and boasts an annual production capacity of 290,000 cars. Currently Honda's existing auto plant in Guangzhou also has an annual output capacity of 290,000 cars. If plus that of the projected plant, Honda's annual production capacity in Guangzhou will amount to 580,000 cars in the near future. This year Honda's plant in Guangzhou is expected to turn out some 200,000 cars to meet the market need there.

F. I. Kao, chairman of Chiao Fu, indicated that the mainland's auto industry has been developing rapidly in recent years. Currently Chiao Fu's operations in Guangzhou focus on serving two major clients--Honda and Toyota there; while its projected headquarters in Kunsan will target potential clients in the delta of Yangtze River, including General Motor and Ford of the U.S. and Nissan of Japan.

Established in 1976 in Taichung, central Taiwan, Chiao Fu is now the world's major supplier of PU foam and related products, operating some 20 plants in Taiwan, mainland China, Hong Kong, Thailand and Australia. Today the company boasts a total workforce of over 1,500 persons.

Chiao Fu has in recent years actively cooperated with the world's leading petrochemical and chemical companies, including Bridgestone, Shell, and Mitsui Chemicals, to develop products for the furniture, footwear and electronics industries.