VIETNAM: Formosa to invest USD 500 million in Vietnam factory

The group is to spend USD 100 million to build a factory capable of making 200,000 tonnes of polystyrene a year in what would be the group's first factory in Vietnam, Hong Fu-yuan, president of Formosa Industries Corp., a subsidiary of the group, told reporters on 6 Nov. 2013.

Hong said the investment will begin after the group completes the necessary application procedure.

After the factory is built, the group will sell the product to companies making home appliances and electronics in Vietnam as there is a cluster of electronic companies nearby, Hong said, adding that the group will ship raw styrene monomer from Taiwan.

The group is to immediately invest USD 100 million to build a cogeneration power plant in Vietnam to provide electricity for its plants and another USD 100 million to increase the capacity of its yarn-making factory to 400,000 spindles a year from 320,000 spindles a year, Hong said.

The group just invested USD 100 million to double the capacity of its polyester fibers factory and another USD 100 million to build the third production line of its biaxial oriented polypropylene film factory, Hong said.

Formosa Chemicals & Fiber Corp, one of the main units of the group that produces aromatics and styrenics, holds a 42.5 % stake in Formosa Industries Corp, while Nan Ya Plastics Corp, Taiwan's largest plastics manufacturer and another main unit of the group, holds another 42.5 percent stake, Hong said.

Formosa Taffeta Co, a textile subsidiary of the group, holds a 10 % stake, while local drink maker King Car Group holds 5 %, Hong said.

Source: Daily "Taipei Times", Taipei; 7 Nov 2013