Creative Master Announces Opening of Factory #5 Ahead of Schedule
31 March 1999
Creative Master Announces Opening of Factory #5 Ahead of Schedule
HONG KONG, March 31 -- Creative Master International, Inc.
today announced that it has opened Factory #5 and that its
initial shipments of finished products were shipped last week from the
factory, ahead of schedule. Factory #5 is now operational with over
500 workers manning the factory's die cast, painting, assembly and quality
control operations.
The Company has also begun construction of the second residential unit of
Factory #5, which eventually will house up to 1,000 additional workers. The
construction of the second residential unit is expected to be completed in
July 1999. This second unit has been started earlier than planned due to the
better than expected order flow from customers, in particular, from Action
Performance. Last year Action Performance and its subsidiaries accounted for
13.9% of revenues.
"The opening of our fifth vertically integrated factory will accelerate
our top-line growth while enabling the Company to realize operating
efficiencies and synergies. This additional manufacturing capacity should
enable us to continue to enhance margins and improve productivity," said
Carl Tong, Chairman and Chief Executive Officer of Creative Master
International, Inc. "With the addition of Factory #4 in 1998 and the opening
of Factory #5, we have more than doubled our square footage since the end of
1997 in response to our customers' increasing demand for our products."
The opening of Factory #5 has increased the Company's square footage of
manufacturing space to over 500,000. Factory #5 currently manufactures
premium die-cast replica products for Corgi and Hallmark, two existing
customers. Corgi and Hallmark collectively represented 9.8% of Creative
Master's 1998 revenues.
About Creative Master International, Inc.
Creative Master International, established in 1987 and headquartered in
Hong Kong, is a leading independent manufacturer of collectible-quality,
die-cast replicas of cars, trucks, buses and other items. The Company offers
customers turnkey product development and manufacturing capabilities, from
design to completion of the product. The die-cast replicas Creative Master
International manufactures are marketed and distributed by the Company's
customers primarily to collectors, hobbyists and other vehicle enthusiasts in
the U.S. and Europe.
For further information on Creative Master visit the Company's website at
http://www.creativemaster.com or, via fax free of charge, dial 1-800-PRO-INFO and
enter company code "CMST."
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Although management of Creative Master believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from expectations
include the composition, timing and size of orders from and shipments to major
customers; market acceptance of new products and other risks detailed from
time to time in Creative Master's SEC reports, including the Company's most
recent annual report on Form 10-K.