Worldwide Manufacturing USA Inc., San Bruno, CA, has acquired Chuan Lin Precision Die Casting Co. Ltd., in Shanghai, China. Chuan is an automotive diecaster, producing cylinders, motor castings, and other automotive parts. Worldwide stated it is offering 1,000 shares of voting preferred stock for the new holding, with each preferred share converting to 1,000 shares of restricted common stock up to a five-year period.
Worldwide already owns Shanghai Intech Electro Mechanical Products in the same Chinese city. The company was founded eight years ago and specializes in manufacturing, contract manufacturing, and it is a direct manufacturer of diecast parts. Customers include aerospace, automotive, and electronics industry manufacturers.
Chuan stated 2003 sales of about $1.8 million and a net income of $114,413, including assets of approximately $1.3 million. For FY 2004, Chuan anticipates $3 million of sales, with a net profit of $250,000.
Jimmy Wang, Worldwide CEO, stated that, "this acquisition allows Worldwide to become a direct manufacturer, obtain larger customer orders and attract new customers, primarily in the automotive industry." He emphasized that that Chuan is now producing at less than full capacity and that his firm plans to install new equipment there in the coming months, valued at approximately $350,000, to enhance the factory's productivity.
"We will continue to focus on the acquisitions of factories in China," Wang said. "These acquisitions will make Worldwide a strong competitive force in the contract manufacturing industry."