Victor Taichung to challenge sales of NT$5 billion for 2005

Taipei, March 24, 2005 (CENS)--Victor Taichung Machinery Works Co., Ltd., one of Taiwan's leading machinery manufacturers, recently announced it would have great chance to see annual sales break the NT$5 billion (US$159.24 million at US$1:NT$31.4) mark this year.

If the goal is achieved, Victor Taichung will take the helm as the first domestic machinery manufacturer with annual sales reaching that level.

Specialized in the development and production of CNC (computerized numerically controlled) machine tools and plastic injection molding machines, Victor Taichung was founded in Taichung County, central Taiwan, half a century ago.

At present, domestic machinery firms with annual sales of more than NT$4 billion (US$127.39 million) include Victor Taichung and Tong-Tai Machine Tools Co. The former posted NT$4.45 billion (US$141.72 million) in sales last year, ranking first among domestic machinery industry maker; and the latter NT$4.35 billion (US$138.54 million).

Chin Fong Machinery Co. is another machine-tool manufacturer with brilliant operating performance by posting NT$3.8 billion (US$121.02 million) in sales last year; and the firm has set a goal to challenge NT$4.3 billion (US$136.94 million) this year. Yeong Chin Machinery Co., focusing on high-performance CNC machine tools and plastic injection molding machines, will challenge NT$4 billion (US$127.39 million) in sales this year, compared to last year's NT$3.5 billion (US$111.46 million).

Victor Taichung, which burst into financial trouble in November 1998 and was immediately forced to be delisted from the Taiwan Stock Exchange some five years ago, has recently reduced capitalization to NT$100 million (US$3.18 million) from past NT$3.8 billion (US$121.02 million) and then raised fresh funds to increase the capital amount to NT$1.1 billion (US$35.03 million). The company said about 40% of the newly raised funds came from abroad, which shows foreign investors have much confidence of the company's prospective operations.

The injection of fresh funds has helped the restructured company consolidate its financial structure. The company expected it would be able to go through the restructuring procedure and back to a normal operation. It doesn't rule out applying to be re-listed on the local bourse sometime in the future.

Huang Ming-ho, president of Victor Taichung, noted the machine-tool industry would continue its upward trend and his company would be able to enjoy a substantial export growth this year. Recently Victor Taichung won a big-ticket order for 10-strong CNC lathes and plastic injection molding machines from importers of Russia, a new market to the company. The company also estimated it would see a more than 30% annual growth in sales to India this year.

With an operating strategy of doing R&D in Taiwan, production in both Taiwan and the mainland China, and marketing globally, Victor Taichung has set up six production facilities in both sides of the Taiwan Strait while keeping Taiwan as its operating headquarters.

The company said it has established seven marketing and services centers globally, with one each in the U.S., United Kingdom, France, Germany, South Africa, Thailand and Malaysia. These centers adopt direct-sell mode to elevate operating profits.

During the Taipei International Machine Tools Show held March 15-20 at the Taipei World Trade Center, Victor Taichung showcased its newly developed high-speed, high-precision linear motor-based horizontal machining center for the first time and the product just won the first prize of the CNC machining center category in an innovation, R&D competition organized by the Taiwan Machine Tool Foundation.