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Investors interested in Air City

Taoyuan County Commissioner Chu Li-lun (朱立倫) said on Saturday that the Asian regional managers of financial groups Macquarie and Morgan Stanley have visited the county government to express their interest in investing in the construction of Taoyuan Air City (桃園航空城), the Chinese-language Economic Daily reported yesterday.

The report said that total investment in the project is estimated to reach NT$2.4 trillion (US$78.9 billion) and its annual production value would be as high as NT$600 billion.

The county government expects that the construction would bring a significant upswing for around 20 related companies, such as EVA Air (長榮航空), China Airlines (華航), Evergreen International Storage and Transport (長榮國際儲運), Farglory Free Trade Zone (遠雄自由貿易區) and Formosa Plastics (台塑).

Chu said in an interview with the newspaper that foreign investors, including Chinese companies from the service and real estate sectors, have taken an active interest in the project and expressed confidence in Taoyuan, the “door to Taiwan,” after the legislative and presidential elections.

Macquarie approached the county government following the legislative elections and Morgan Stanley after the presidential election.

In addition, Chu said, many members of the American Chamber of Commerce have also expressed an interest in the development of the project.

Chu said the investment climate had changed significantly following the presidential election, most notably in terms of restored confidence and an increased willingness to invest among domestic and international investors.

President-elect Ma Ying-jeou (馬英九) has promised that he will initiate the construction of seven large airports for cross-strait flights when he takes up his new post and that Taoyuan and Kaohsiung airports will be given top priority.

Taoyuan County Government plans for a 6,150 hectare Air City which would include a free trade zone, an airport, an area for the aviation industry, a trade exhibition area, a shopping area, a coastal leisure area, an agricultural development area and an area for other industries compatible with the airport.

Plans show the project will draw NT$2.4 trillion in investment, create business opportunities worth NT$1.2 trillion and have an annual production value of NT$600 billion.

The planned Taoyuan Air City is expected to boost the performance of related shares, such as high-speed rail constructors, urban mass rapid transportation builders, logistics companies and companies that have assets there such as Formosa Plastics Corp, Far Eastern Textile Co (遠紡), Shinkong Synthetic Fibers Corp (新纖) and Yuen Foong Yu Group (永豐餘集團).
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