In a recent announcement, KMC stated that it is planning to increase its number of chain factories worldwide from four to six by adding major production facilities in both mainland China and Vietnam. Calling for an investment of US$15 million, the new 60,000 square foot Chinese production facility will be located in the Yuemeng factory in Shenzhen. It is expected to produce 22 million motorcycle chains and 12 million engine chains annually for sale on China's domestic market.

Located in Bien Hoa City, just north of Ho Chi Minh City, the new factory in Vietnam will become KMC's chain production center in Southeast Asia. It will focus mainly on the production of motorcycle transmission and engine chains, planning to produce 10 million of each annually, as well as producing three million bicycle chains each year. These products will be sold mainly in ASEAN countries. The proposed 60,000 square foot factory calls for a US$10 million investment, and should be completed within three years.

KMC expects sales of chains in 2000 to increase by 10% over 1999. (Bike Europe, 29 March 2000)

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