Victor Taichung Machinery Signs Supply Contract with Chinese Auto Parts Customer

Taipei, April 3, 2012 (CENS)--Benefiting from ECFA (Economic cooperation Framework Agreement) signed between China and Taiwan, Victor Taichung Machinery Works Co., Ltd., has signed a contract with a China-based auto parts supplier, Fujian Shenlika Aluminum Industry Development Co., Ltd., to supply 50 sets of different NC (numerically controlled) lathes worth over NT$120 million in the coming years.

At the contract-signing occasion, M.H. Huang, president of Victor Taichung Machinery, stressed that Fujian Shenlika, who already bought a number of NC machinery from his company, decides to introduce 50 sets more after garnering a big order from the Japanese carmaker Toyota. Huang furthered that this indicates his company's products with excellent quality have been well recognized by the Chinese customer.

In addition to high quality and great functionality of Victor Taichung Machinery's products, Y.Q. Wu, general manager of Fujian Shenlika, said that his company is also satisfied with rapid delivery and considerate customer services guaranteed by the supplier. The Chinese company, which began by making bathroom fittings and then ventured into wheel rims a few years ago, is now a burgeoning company with annual revenue of over RMB500 million.

Buoyed by Toyota's huge order, the Chinese company is confident of finishing this year with annual revenue of RMB800 million, emphasized Wu. The company has recently acquired a land lot of 600 hectares for output expansion, ambitiously aiming to become a bigger-sized supplier with annual turnover of RMB4 billion. To achieve the goal, Wu said that his company will continue to purchase production machinery from Victor Taichung Machinery in the future.

Despite industrial depressions caused by the mounting EU debt crisis in the second half of 2011, Victor Taichung Machinery still tallied EPS (earnings per share) of nearly NT$3 in the year as one of the most profitable companies in the line on the island. So far this year, the company has secured contract orders worth about NT$1.3 billion on hand, making its production lines of small and medium-sized machine tools already fully booked through May. Consequently, the company can't help but postpone delivery of its large-sized models to the second half of the year.