FPG Building forming Ttextile & Ppetrochemical Kkingdom in Vietnam

Eyeing potential development opportunities in Vietnam, Formosa Plastics Group (FPG), Taiwan's leading plastics & petrochemicals conglomerate, has of late beenactively launched investing activelyments in the country, trying to building up what is being called "a textile & petrochemical kingdom" there.

Since being granted a securegaining U.S. textile quota late in 2001, Vietnam has become one of the most favored investment destinationsplaces for Taiwanese textile manufacturers, and . FPG has set up therefore constituted Formosa Industries Corp. as its businessproduction vehiclebase therein Vietnam. The new company is actually a joint venture by three of FPG' s three affiliates-- Nan Ya Plastics. Corp., Formosa Chemical & Fiber Corp., and Formosa Taffeta Co.--—along withand King Car Food Industrial Co., Taiwan's leading processed-food maker.

Initially Formosa Industries has invested US$243 million in the first stage of its development project in Vietnam, and now is now planning to funnel an in additional US$482 million in the constructions of the soon-to-be-launched second stage.

The firm's expansive complex, on a Formosa Industries, taking a huge area of 300- hectare lots, is located in Nhon Trach Iindustrial Zzone in the at Nhon Trach District of Dong Nai Province, southern Vietnam. Two hundred Of the huge land, the company is going to use 200 hectares will be given over to to set up different kinds of plants for the production of spinning yarns, polyester filaments & chips, petrochemical products, and electricity as well. The other As for the remaining 100 hectares will be made available of the land lot, the company has decided to offer to other manufacturers that are interested to move in.

Industry iInsiders have stated that comment on FPG's goal is to 's project in Vietnam by saying that the conglomerate is ambitious of building up a textile & petrochemical kingdom in Southeast Asia as a key component of its strategy to furtherto further expand its global operations in the world market. The project is the has so far been the largest of its kind to date in Vietnam.

A ranking official at Formosa Industries official statesnotes that the spinning- yarn plant invested by Formosa Chemical is the project's first to go onlineplant of the huge project. Operations were kicked off, and the plant started official running in April of this year, two months ahead of the schedule. Etoday the plant turns out each day 115 tons of polyester filament, 225 tons of polyester fiber, and 410 tons of polyester particles for plastic bottles are rolled out its doors..

The project's second plant, a invested by Nan Ya investment, is now under construction. It will house the plant will install two production lines primarily dedicated to to turn out mainly borealis polypropylene (BOPP), a kind of high-tech petrochemical raw material, with a and its daily production volume of is estimated to be 180 tons.

Another senior official at FPG pointsed out that FPG was attracted to the country for the expansion of its operations in Vietnam, and is inviting Taiwan's other textile makers to move their production lines there, because Vietnam's the project has so far been the largest investment case in Vietnam. As there is no dumping problem for textile industry hasmanufacture faced no charges of dumping rs in Vietnam to export polyester fiber or long- fiber products into the United States orand Europe. , FPG has therefore been encouraged to largely expand its operations in Vietnam and to actively invite Taiwan's textile makers to move their production lines there. In additionBesides, compared to other nations in Southeast Asia, Vietnam offers a predictable government-policypresents climate steady administration and lower labor costs., which are also important to foreign investors.

Apart from the 200 hectares of land reserved for FPG's plants, Formosa Industries also offer the remaining 100 hectares of its purchased land lot in Nhon Trach industrial zone to other enterprises that are interested to move in. So far, nine enterprises have either signed or indicated and intentd to sign contracts with Formosa Industries to move into the 100-hectare section being offered up to other firmsthe company to station in the area. Among thesem are King Car,; Kuang Tai Metal Industrial Co., a welding- wire maker,; and Kuo Yuen Tannery Co., a manufacturer of cowhide cowhide split finished leather and also an affiliate of Pou Chen Corp., the world's leading shoe maker.

Since Vietnam has an sees unstable electricity supply, FPG has decided to establish power plants to ensure supply to prooperations in the new complexvide its affiliates there. The first was FPG's first electric power factory in Vietnam has recently completed and is supplying the started official running along with its spinning- yarn plant there. And its second power plant is now under assessment, and expected to break ground soon Ground is soon to be broken for the second. . After expanding its power operations in Vietnam, FPG plans to eventually expand its power facilities to the point where it can also offer intends to supply to the general marketelectricity to the market need there in the near future.