Grace T.H.W. expands output of electronic materials in eastern China

Taipei, Aug. 6, 2003 (CENS)--Grace T.H.W. Group has been aggressively expanding output of electronic materials in eastern China, putting it into direct competition with Nan Ya Plastics Corp., a subsidiary of the Formosa Plastics Group (FPG).

Grace T.H.W. Group was founded in mainland China by Winston Wang, the son of FPG chairman Y.C. Wang.

In the past several years, Grace has concentrated on the production of such plastic products as polyvinyl chloride (PVC) leathers and fabrics in southern China. Over the past year, the group has become involved in the production of such electronic materials as epoxy, fiberglass fabrics and filaments and extended its production to eastern China.

Grace invested over US$60 million to set up Hongchang Electronic Material Industry Co. in Guangzhou of Guangdong province. Hongchang currently produces over 60,000 metric tons of epoxy, making it mainland China's largest manufacturer of the material. Grace intends to expand Hongchang's annual epoxy production capacity to 200,000 metric tons in the near future.

Over the past several years, Grace has gradually expanded production of electronic materials in eastern China, including the launching of an electronic material plant in Wuxi, Jiangsu province. The group has also expanded production capacity at a fiberglass fabrics plant in Shanghai and procured a 1,000-acre site in Wuxi to build a new electronic materials plant. The group is also planning to set up a plant in Kunshan, near Shanghai, to make rigid PVC fabric as well as a plant in Wuxi for rolling out BOPP (biaxially oriented polypropylene).

A Grace executive said his group currently has two production sites in Guangzhou and Wuxi, with marketing outposts in Shanghai, Tianjin, and Chengdu of Sichuan province.