SHENZHEN, China (28 March 2000)--KMC has announced that it is planning to add two major production facilities to its existing network, one in mainland China and one in Vietnam. This will bring the number of KMC's chain factories worldwide to six.
The new Chinese production facility will be in the Yuemeng factory in Shenzhen. Construction of this 60,000 square foot factory already began at the end of last year and calls for an investment of US$15 million. The Yuemeng factory is expected to turn out 22 million motorcycle chains and 12 million engine chains annually. Most will be sold on China's home market. The new factory in Vietnam will be KMC's chain production center in Southeast Asia. The concentration will be primarily on motorcycle transmission and engine chains, with bicycle chains as a secondary item. Its products will be sold mainly in ASEAN countries. The 60,000 square foot factory is located on the Amata Industrial Estate of Bien Hoa City in Dong Nai Province, not far north of Ho Chi Minh City, and calls for an investment of US$10 million. Construction is set to begin soon and should be finished within three years. Once completed, the factory is expected to turn out 10 million motorcycle chains, 10 million engine chains and three million bicycle chains each year. In 2000 KMC expects to sell over 100 million meters of chain, or 10% more than in 1999. (JW)