Mosel fraud charges denied
Former Mosel Vitelic Inc. chairman Hu Hung-chiu (胡洪九) denies accusations of fraud committed while he was an executive at Asia Pacific Wire & Cable Corp (太電), according to a lawyer representing him.
The legal process will "prove Hu's innocence," lawyer Lo Bing-cheng (羅秉成) said in a statement yesterday. Hu has been detained by investigators, the statement said, without elaborating on the allegations. Telephone calls to Lo's office went unanswered.
Hu is under investigation for possible malfeasance when he was an executive director at Asia Pacific Wire. Mosel denied a claim in the report that investigators have frozen NT$4 billion (US$124 million) in Hu's assets, including shares of Mosel, while they pursue the allegations.
AIDC secures loans
State-run Aerospace Industrial Development Corp (AIDC, 漢翔航空) yesterday announced that it has gained two five-year syndicate loans of NT$2.5 billion and US$15 million respectively from12 banks led by the Industrial Bank of Taiwan's (台灣工銀).
The loans will be used in improving AIDC's financial structure, boosting circulating funds, and procuring raw materials from overseas countries, Tong Sun (孫韜玉), chairman of AIDC, said at a press conference yesterday. Sun did not specify when the loans were signed.
AIDC reported a lost NT$238 million in pre-tax income for the first nine months of the year, but saw turnaround in October and posted pre-tax income of NT$30 million in the Jan-Oct period. The company expects to earn NT$10.4 billion in revenues this year. With the loans to support the company's mid-term operation, AIDC hopes to see revenue climb to NT$16 billion within the next five years, Sun said.
AIDC was established to build the Defense Fighter (經國號) in 1996, but the production of the fighter was ended in 2000 and put AIDC in financial trouble. In recent years, AIDC has gradually gained business back by switching to civil aircraft manufacturing and maintenance, Sun said.
China Steel to expand capacity
China Steel Corp (中鋼), the nation's largest steelmaker, said it will expand production capacity for electrical steel coils used to make motors to meet demand for the domestic market, China and Southeast Asia.
China Steel will increase its capacity for the product by 200,000 tonnes, with the project expected to be completed in June 2007, the company said in an e-mailed statement today, without giving current capacity.
Demand for electrical steel coils is increasing because of rising need for motors used in automobiles, fans and computers, China Steel Vice President Chung Lo-min (鍾樂民) said.
"We'll be looking for contractors to supply machinery" for the production line, Chung said. He declined to provide the project costs.
China Steel said on June 25 that net income this year will probably rise to NT$46.4 billion, on rising global demand for steel. The figure is 25 percent higher than NT$37 billion posted last year.
Fubon to sell Taiwan's first REIT
Fubon Financial Holding Co (富邦金控) will sell the nation's first real estate investment trusts, worth NT$5.8 billion (US$179 million) next month, said James Wu (吳均龐), president of Fubon Commercial Bank (富邦銀行).
Fubon plans to offer as many as five REITs based on properties the company owns in various Taipei districts, Wu said.
Fubon Financial is the country's second-largest financial services provider. A REIT is a company that purchases and manages real estate or real estate loans, using money provided by its shareholders.