Her Chee wins big-ticket PTW order from Vietnam customer

Taipei, June 14, 2005 (CENS)--Taiwan's Her Chee Industrial Co., Ltd. Recently inked an agreement with a state-run enterprise of Vietnam to supply at least 60,000 125cc and 150cc motorcycles and scooters per year in the coming few years.

The supply agreement is expected to add revenue of about NT$2 billion (US$64.1 million at US$1: NT$31.2) to Her Chee in next few years, according to company chairman C. C. Chen.

Her Chee is a major maker of powered two-wheelers (PTWs) and all terrain vehicles (ATVs) in Taiwan. The firm sells its products both under its own brand of "Adly" and on an OEM/ODM basis.

According to Chen, Her Chee will face no difficulty expanding its production scale to meet the Vietnamese customer's demand as PTWs are already the firm's matured products. Chen said his company won the new big-ticket order mainly because of its four-valve PTW engine designs, which can generate higher horsepower and torque output as well as meet the uneven road conditions in Vietnam.

Chen pointed out that the Vietnamese PTW market has undergone structural changes in that China-made products have been ousted due to poor quality despite their low prices. After the market reshuffle, Chen added, Taiwanese PTW makers have kept enjoying solid footholds in Vietnam.

Currently, local Sanyang Industry Co., Ltd. Has set up two PTW plants in Vietnam, which are operated by the firm's subsidiary Vietnam Manufacturing and Export Processing Co. Ltd., or VMEP. Kwang Yang Motor Co., Ltd. (KYMCO), the No.1 PTW maker in Taiwan, has announced plans to set up a PTW production venture in Vietnam soon. Her Chee also does not rule out building a production plant in Vietnam so as to sidestep tariffs.

In addition to its PTW sales, Her Chee also projected to sell 37,000 ATVs this year, up 15% or 5,000 units from last year.