Taiwanese Bathroom Ware Giant Enters Military Equipment Biz

Taipei, Nov. 8, 2005 (CENS)--Hocheng Corp., Taiwan's largest manufacturer of bathroom wares, has recently diversified into production of bulletproof ceramic panels for armed force equipment, and expects to win fourth-grade test approval on its products from H.P. White Laboratory Inc. of the United States soon.

The Taiwanese company began developing precision ceramic two and a half years ago in hope of boosting revenue at a time when the domestic bathroom-ware market was already crowded. The company established a business unit to focus on bulletproof ceramic panels and fibers for bulletproof vests and even armors used on vehicles.

The company's major product lines include ceramic articles, copper articles, bathroom accessories, kitchen wares, floor tiles, potter boards and marble tables. The company has been working hard to transform itself into a high-tech enterprise specializing in specialty-material applications and developments.

In the middle of the year, Hocheng won a third-grade test approval from White, proving its products can resist bullets from handguns and rifles. The fourth-grade approval is for tested products that can resist armor piercers.

The company plans to start commercializing its bulletproof ceramic boards as soon as it is awarded with the fourth-grade test approval. Products for its ceramic boards will include bulletproof vests, bulletproof helmets and armors.

Hocheng reports its bulletproof ceramic boards are only a half to one third the weight of steel panels and 10% to 20% discount to imported comparable products, making them very competitive bulletproof ceramic products.

The company estimates the new products to inject NT$200 million to NT$300 million (US$6 million to US$9 million) into its annual revenue in three to five years. It lost NT$1.71 per share on revenue of NT$2.9 billion (US$89.6 million) throughout last year as a result of booking a loss of NT$800 million (US$24 million) according to the government's 35 Document. Recovering real-estate industry at home enabled the company to earn NT$55.73 million (US$1.6 million), or NT$0.13 per share, after tax deduction on revenue of NT$2.1 billion (US$66 million) in the first three quarters.