Victor Taichung Acquires Sunny to Tap Green Energy Industry

Taipei, June 20, 2008 (CENS)--Victor Taichung Machinery Works Co., a major Taiwan-based manufacturer of machine tools and plastics processing machines, recently announced its acquisition of Sunny Environmental Consultants, Ltd., Taiwan's largest plastic container recycler.

Victor Taichung said it would offer NT$200 million (US$6.57 million) to acquire 84% stake in Sunny, which has capital of NT$130 million (US$4.27 million).

The merger with Sunny will help Victor Taiwan tap the most promising "green energy" sector to create an added NT$2 billion (US$65.78 million at US$1:NT$30.4) in annual sales. Victor Taichung said it would rent land in Chang Hua Coastal Industrial Park to house the new business.

Victor Taichung's major product lines include CNC (computerized numerically controlled) machine tools and plastic injection molding machines. The company saw sales reach NT$5.87 billion (US$193.09 million) in Taiwan operation. Including overseas operations, the entire Victor Taichung group registered NT$9 billion (US$296.05 million) in combined sales last year, up 20% year-on-year. The group posted NT$6 (US$0.19) in after-tax earnings per share last year. The firm will likely become Taiwan's first machine-tool manufacturer with annual sales exceeding NT$10 billion (US$328.94 million) this year.

Sunny, founded in 1999, is a specialist recycling plastic containers with a factory approved by the Cabinet-level Environmental Protection Administration. The company has two plants, one each in Tainan County of southern Taiwan and Taoyuan County of northern Taiwan.

Sunny's two plants specialize in production of recycled PET (polyethylene terephthalate), PE (polyethylene), PP (polypropylene), PS (polystyrene) and PVC (polyvinyl chloride) flakes. In addition domestic sales, the company also exports to mainland China, Southeast Asia and the United States, with its annual sales totaling NT$1 billion (US$32.89 million) last year.

Bert M.H. Huang, president of Victor Taichung, said Sunny is the island's largest firm specializing in production of recycled plastic containers with a 40% market share domestically.

Huang said PET recycled chips has a very promising market with wide ranging applications in textile and 3C (computer, communications, consumer electronics) industries.