SEEC, Mitsuba to set up electric auto parts venture in China

Taipei, June 2, 2005 (CENS)--Taiwan's Shihlin Electric & Engineering Corp. (SEEC) has decided to set up an auto-parts production venture in Fuzhou, Fujian Province, mainland China, in cooperation with Mitsuba Corp. of Japan.

The new venture, in which the two parties will each hold a 50% stake, will produce electrical auto body parts. Both SEEC and Mitsuba are leading original equipment (OE) suppliers of automotive electrical-parts in the world.

Emmet Hsu, chairman of SEEC, claimed that his company's auto-parts business is expected to account for 40% of its total revenue this year, up from last year's 35%. The annual sales growth of such business is expected to reach 20% in the coming few years.

Some institutional investors estimated SEEC to score annual revenue of about NT$13 billion (US$414.01 million at US$1: NT$31.4) this year, up slightly from last year's NT$12.7 billion (US$404.46 million). The company's overseas operations are expected to generate revenue of about NT$3 billion (US$95.54 million), the investors estimated, compared with about NT$2.2 billion (US$70.06 million) in 2004.

SEEC has been actively trying to further consolidate its leading position in electrical auto-parts business these years. Currently, the company supplies a wide range of engine and body electrical parts to local auto and powered two-wheeler (PTW) makers.

According to Hsu, SEEC currently accounts for over 70% of the local OE electrocial parts market and over 50% of PTW electrical-parts market. As the domestic market has matured, the company has been actively developing overseas businesses, especially in mainland China (automotive) and Vietnam (PTW).

Hsu explained that SEEC's new venture with Mitsuba will penetrate the electrical auto body parts arena. The new venture will start mass production next year and supply products to many leading car makers in China, especially Japanese-series ventures such as South East Motor Corp., Dongfeng-Nissan, Changan Ford, Hainan Mazda etc.

In a bid to support the firm's overseas business development, SEEC's board of directors has decided to boost its investments in China to US$60 million from US$30 million before.