Consumer electronics-maker Chun Tai Holdings says it is considering investing US$1 million in new machinery for its production facilities. Speaking after the company's annual meeting for shareholders, managing director Chung Kam-ming said the new machinery was needed to expand production of its video compact disc (VCD) players and cordless phones. Mr Chung also said contracts on hand are up 75 per cent for the half-year since March compared to the previous year. The company had sales of $526 million last year. Mr Chung said the company's new production facility in the Huoju Development Area of Zhongshan in Guangdong province is now about two-thirds operational. 'The remaining capacity will come on-line in mid-October, as soon as we finish working out shipping and transportation details,' he said. Mr Chung said the increase in contracts on hand meant that the new factory is already scheduled to operate at 100 per cent capacity until the middle of next year. 'We are having to contract out some of our production now while we finish setting up the new plant,' he said. The company has a joint venture with the mainland electronics bureau in Wuhan to produce and distribute VCD players under the Casio brand-name on the mainland that is scheduled to begin next month. 'While we export all of our products now, we are targeting to have 10 per cent of our sales in the mainland by 1998,' Mr Chung said.