Goodway Accelerates Expansion Plans in Taiwan and Mainland China

Taipei, July 30, 2012 (CENS)--Goodway Machine Corp. and its subsidiary, AWEA Mechantronic Co., Ltd., plans to start volume production at their machine-tool joint venture in mainland China at the end of this quarter and expect to start construction of a joint venture in southern Taiwan sometime next year at earliest.

Both expansion plans are part of the company's plan to boost sales revenue.

Goodway's chairman, T.H. Yang, said Goodway and AWEA each invest US$8 million in the mainland Chinese venture, which is located in Wujian of Jiangsu Province. The venture is designed to put out standard small lathes and large and small machining centers.

The joint venture planned to operate on 40,000 pings, or 132,200 square meters, of land in Chayi, southern Taiwan, is designed to make vertical lathes. Goodway and AWEA will put a combined NT$3 billion (US$100 million at US$1:NT$30) into the venture.

According to Goodway, the mainland Chinese venture's turnover will not be included in Goodway and AWEA's mainland Chinese operation this year.

Goodway's Suzhou factory in Jiangsu generated revenue up to RMB100 million (US$15 million at US$1:RMB6.3) last year and is projected to turn out RMB160-200 million (US$25-31 million) this year.

Last year, AWEA's Shanghai factory generated revenue of approximately RMB100 million (US$15 million) by putting out machining centers. Industry executives estimated the company's mainland factory to have revenue over RMB100 million this year.

Goodway and AWEA have quite inconsistent mainland Chinese operation each other. Goodway executives pointed out that growth slowdown of the mainland's economy has affected business of the company's mainland Chinese factory. AWEA executives said after seeing orders dropping from the fourth quarter last year through the first half of this year the company's mainland Chinese factory has recently won increased orders from the mainland's aircraft industry for big machines and from Apple's supply chains. Also, American carmakers and Southeast Asian vehicle makers have placed increased orders with the factory.