Fair Friend Aims to Become One of South Korea's Top-three Machine-tool Manufacturers

Taipei, April 23, 2012 (CENS)--Thanks to the acquisition of a 50% stake in DMC of South Korea in the beginning of this year, the Taiwan-based Fair Friend Group will become one of South Korea's top-three machine-tool manufacturers in the next three years with annual sales targeted at US$400 million, or NT$12 billion.

Headquartered in Busan of South Korea, DMC was established in 1944 as one of South Korea's most veteran manufacturers of machine tools. DMC is one of the biggest shareholders of Samsung Machine Tools Corp., a listed machine-tool firm in South Korea. DMC specializes in the production of lathes, machining centers and tapping centers. With annual sales exceeding US$90 million last year, DMC is currently one of South Korea's top-six machine-tool manufacturers.

By cooperating with Fair Friend, DMC will be able to rapidly expand market share in China market as Fair Friend has established solid marketing network and distribution channels in China.

Hsu Hsiu-tsang, chairman of the Taiwan Association of Machinery Industry (TAMI), said the inclusion of DMC under the umbrella of Fair Friend Group is of great significance as South Korea is traditionally Taiwan's archrival competitor in the machine-tool arena.

Fair Friend chairman Jimmy Chu noted prospects for South Korea's machine-tool industry is very promising in the wake of the implementation of the free trade agreement between South Korea and the U.S., prompting the Japan-based Toyota Motor Corp. to set up a plant in South Korea.

Chu predicted DMC to see sales grow over 30% year-on-year this year. In the past, Fair Friend sold less than NT$100 million worth of machine tools to South Korea. Chu forecasts his group's sales to South Korea to jump by fourfold year-on-year in 2012.