China Metal moving to list on H.K. bourse

Taipei, June 11, 2004 (CENS)--China Metal Products Co., Ltd. (CMP), Taiwan's leading manufacturer of cast iron and pig iron, will make progress in launching global deployment with manufacturing bases across the Taiwan Strait this year.

CMP, a firm listed on the Taiwan Stock Exchange, has been operating in the mainland for 12 years. By the end of this year, CMP will merge two cast-iron plants in Tianjin and Suzhou to pave the way for listing on the Hong Kong Stock Exchange. In addition, the company will also develop partnerships with some foreign customers by the end of this year.

The company boasted it would complete all the listing processes by the end of this year. But the listing date will depend on the conditions of the H.K. stock market.

Ho Ming-hsien, president of CMP, said his company saw monthly output of Tianjin and Suzhou plants reach 3,900 and 2,900 metric tons of cast iron, respectively, in May. By the end of this year, these two plants together will be able to produce 8,000 metric tons of cast iron. If domestic production capacity is calculated, the company will see total output reach 10,000 metric tons per month by the end of this year, poised as Asian's third largest producer of the product.

Specializing in the production of iron casting for automobile parts and machine tools, CMP has major customers coming from at home and abroad, including Chiu Ting Machinery Co., Ltd. And Kaulin Machining Co., Ltd. The company's major business scopes include importing cast-iron materials and pig-iron trading.

The company said listing stocks on the H.K. bourse would help it boost mainland operation as it can no longer rely on the operating funds from Taiwan's headquarters. The firm estimated to acquire fresh funds of between US$50 million and US$60 million from the stock listing.

If the stock listing goes smoothly, the company will set up two new plants in Tianjin and Suzhou to meet the influx of orders. After these two new plants are inaugurated, the firm will see annual output reach 200,000 metric tons of iron casting in both Taiwan and the mainland, with an expected annual revenue of NT$6 billion (US$179.1 million at US$1:NT$33.5).

CMP said it will obtain between NT$400 million (US$11.94 million) and NT$500 million (US$14.92 million) in dividends per year released by the prospective listing firm on the H.K. stock market, contributing NT$3 (US$0.09) in earnings to each common share of parent company.