Nan Ya Plastics, FCF to invest NT$10 billion in Vietnam

Taipei, Jan. 6, 2003 (CENS)--Nan Ya Plastics Corp. and Formosa Chemicals & Fibre Corp. (FCF), two large local manufacturers listed on the Taiwan Stock Exchange, will invest about NT$10 billion in Vietnam.

Nan Ya Plastics and FCF are two core affiliates of the Formosa Plastics Group (FPG) and play the role of a pioneer in the group's investment in Vietnam.

Nan Ya Plastics has obtained permission from the Vietnamese government to establish a polyester factory with a daily production capacity of 750 metric tons of bottle-grade polyester chips, polyester staple fiber, and polyester filament yarn in the aggregate. In addition, the company will set up a BOPP (biaxial oriented polypropylene film) factory with a monthly production capacity of 2,700 metric tons.

The two factories will call for investment of estimated NT$8-NT$9 billion and the polyester factory will be completed and inaugurated in the first half of next year.

Meanwhile, FCF will invest NT$1-2 billion to set up a factory of yarn with production capacity of 80,000 spinning spindles as well as a coal-fueled power plant. The yarn factory will come into operation in the first half of 2004 while the power plant will be completed later.

There is unstable power supply in Vietnam, implying a large market potential for investment in power generation there. Although CFC has obtained a license for the aforementioned power plant, however, the FPG's recent application for setting up three more coal-fueled power plants with power generating capacity of 150,000 kilowatts each was recently rejected by the Vietnamese government.