Taiwan: Sanfu Motors Considers Vent

[moe@xxxxxxxxxxxxx]

Subject: Taiwan: Sanfu Motors Considers Venture In Burma


Dow Jones Business News -- March 19, 1997
                Taiwan: Sanfu Motors Considers Venture In Burma

                                       AP-Dow Jones News Service

                                       TAIPEI -- Taiwan's Sanfu Motors
Industrial Co. (Q.SFM) is considering selling
                                       model tooling and other equipment for
the manufacture of Renault 9 passenger cars
                                       to Burma's state-owned Myanmar Heavy
Industry Co., company spokesman Huang
                                       Shu-shen said Wednesday.

                                       The proposed sale, estimated at about
NT$500 million, could lead to a joint venture
                                       between the Taiwanese and Burmese
automakers, he said.

                                       Sanfu no longer produces the Renault
9 model which was phased out in Taiwan in
                                       1993, but the facilities should be of
some value to the budding auto industry in
                                       Burma, Huang said.

                                       Huang said it is still unclear when
the deal with Myanmar Heavy Industry will
                                       materialize, and no further details
were available. 'We certainly hope the cooperation
                                       will take place as soon as possible,'
he said, noting the sale would boost Sanfu's
                                       sagging earnings.

                                       He denied local news reports that the
venture in Burma will produce 3,000 cars a
                                       year.

                                       Meanwhile, Huang said Sanfu has
reached agreement with Jack Wang Motor Co.,
                                       the Taiwanese distributor of Hyandai
vehicles, to assemble the South Korean brand's
                                       Accent passenger cars in Taiwan.

                                       Production of the Hyundai cars, the
first-ever for a Taiwanese company, will begin
                                       in the third quarter this year, with
full annual capacity at 10,000 cars, he said.

                                       In trading on the Taiwan Stock
Exchange, Sanfu stock gained NT$1.1 to close at
                                       NT$20.1 on volume of 25.1 million shares.