KMC: World’s Biggest Chain Maker Getting Bigger
TAIPEI, Taiwan – KMC Kuei Meng International Inc reported to the Taipei Times that it is planning to fully takeover China-based KMC Transmission (Tianjin) Co. With this acquisition KMC is investing USD 26.5 million.
KMC is the world’s biggest bicycle chain maker. According to the Taipei Times the company currently is accounting for about 70% of the global supply of bicycle chains.
The takeover is expected to be completed on July 1, allowing KMC Kuei Meng International to book revenue and profit from the Tianjin-based company starting in the second half this year, as company spokesman Jeter Chen said. The deal would help lift KMC Kuei Meng International’s revenue to TWD 2.5 billion (USD 82 million) this year, up 21%.
Growth in northern China
Company spokesman Chen said further that KMC Transmission (Tianjin) could see annual revenue growth of about 10%, in line with the growth of the bicycle industry in northern China.
Last year, KMC Kuei Meng International reported a profit of TWD 399 million (USD 13mn); up 55% compared to the company’s 2012 profit, aided by sales in the US, Europe and Indonesia, Chen said.