SEYI (Shieh Yih Machinery) Poised for Recovery in 2010 Due to Strong Sales in China

Author
SySAdmin
Posted
March 4, 2010
Views
2228

Page All:

Page 1
SEYI (Shieh Yih Machinery) Poised for Recovery in 2010 Due to Strong Sales in China

Following a challenging 2009, sales in China, the Company's main market, increased sharply in the Fourth Quarter, with strong orders continuing into 2010.

KUEISAN HSIANG, Taiwan, March 4 -- SEYI (Shieh Yih Machinery) (4533 TT), one of the world's leading producers of mechanical presses, said today that its China sales are expected to grow significantly in 2010. Strong market conditions lead to a fourfold increase in sales to customers in China during the Fourth Quarter of 2009. In the final three months of the year, China sales amounted to TWD 280.7 million (USD 8.8 million) and accounted for 56% of the Company's total revenues, making China the largest market for SEYI's presses.

(Logo: http://www.newscom.com/cgi-bin/prnh/20100304/CNTH010LOGO )

In 2010, SEYI will continue to benefit from the growth of the China market. China's economy grew by 10.7% in last year's final quarter, and is expected to grow by a further 10% in 2010. SEYI presses are used by a broad base of manufacturers which expand capacity in good times and curtail orders for new presses when economic conditions are uncertain. Approximately 65% of SEYI sales are made to manufacturers of computers, communication equipment and consumer electronics, with the balance being sold to automotive and appliance customers.

In 2010, SEYI will also benefit from the start of production at its second manufacturing facility in China, which is targeted to build larger, higher- margin presses for the country's rapidly growing automotive industry. In 2009, vehicle production in China increased by 46% to 13.7 million units.

Largely on the back of stronger demand from China, SEYI's total sales in January were TWD 199 million (USD 6.2 million), and lead times for the delivery of new orders have stretched to 120 days. SEYI is adding workers and machining centers to meet the increased level of demand.

SEYI's strong growth in China follows a difficult 2009, a year in which the Company's sales declined by 58% to TWD1.8 billion (USD 56.2 million) from TWD 4.2 billion (USD 131.0 million) in the prior year. Ms. Claire Kuo, who was elected Chairman of the Company's Board of Directors and named as its Chief Executive Officer, effective July 1, 2009, said, "My first six months as CEO of SEYI was clearly a challenging time for the Company. Our presses are used to manufacture products for a wide range of industries, and our customers adjust equipment purchases quickly in response to changing demand. While we felt the impact of the global economic crisis in 2009, though, we are now benefiting from the economic recovery that is underway, particularly in China."

In addition to a stronger market in 2010, Ms. Kuo noted, SEYI will benefit from actions taken in 2009 to reduce costs and augment the company's equity capital. "In recognition of weaker markets," Ms. Kuo said, "We reduced headcount and streamlined operations in 2009. We also issued 20 million new shares of common stock in a rights offering in October, raising TWD 168 million (USD 5.2 million) of fresh equity, which was used primarily to reduce debt and strengthen the Company's balance sheet."

About SEYI

Founded in 1962, SEYI has established a position of global leadership in the press building industry over the past 48 years. SEYI manufactures mechanical presses, ranging in size from 25 to 2400 tons, at facilities located in Taiwan and the People's Republic of China. At its original location in Taoyuan, Taiwan, SEYI operates a 12,500 square meter facility, and in 2003 the Company began production in China at an 11,000 square meter facility located in Kunshan, Jiangsu Province. Combined production capacity at the Taoyuan and Kunshan plants approaches 4,000 presses annually. Construction of a second 11,000 square meter facility in Kunshan was completed in 2009 and will begin production in 2010. The new facility in Kunshan will manufacture up to 600 presses annually, ranging in size from 300 to 4,000 tons. SEYI products have been sold to customers in over 40 countries around the world, and the Company is the dominant foreign supplier to China, India, South East Asia and the Americas in terms of volume. SEYI is the recipient of numerous quality awards from around the world.

The Company completed an initial public offering of its common stock in 2002 and is traded on the Taiwanese OTC (4533 TT) market.

  Note:  TWD 32.049 to USD1.0

  For further information, please contact:

   Fathi El-Farghali
   Director of Business Development
   SEYI (Shieh Yih Machinery Industrial Co., Ltd)
   203 Lemon Creek Dr. Unit A
   Walnut, California 91789 USA
   Phone:  +1-909-839-1151 x207 (USA)
   Mobile: +1-626-675-9591 (USA)
   Email:  Fathi@seyiamerica.com
   Web:    http://www.seyi.com/

Photo:  NewsCom: http://www.newscom.com/cgi-bin/prnh/20100304/CNTH010LOGO
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
           
Source: SEYI (Shieh Yih Machinery Industrial Co., Ltd)
   

CONTACT: Fathi El-Farghali, Director of Business Development of SEYI
(Shieh Yih Machinery Industrial Co., Ltd), +1-909-839-1151 x207 (USA), or
mobile, +1-626-675-9591 (USA), or Fathi@seyiamerica.com

Web site: http://www.seyi.com/

Title

Medium Image View Large