Shinkong Synthetic Fibers Corp (新光合纖) on Saturday said it planned to expand its production in Thailand on expectations that demand for artificial fiber would increase from quarter to quarter this year.
Shingkong Synthetic Fibers, one of Taiwan’s leading textile suppliers, said it aimed to expand production capacity of polyethylene terephthalate (PET) bottle-grade resin at its Thailand plant by 10 percent to 20 percent, since the artificial fiber industry is expected to do better in the second half of the year than the first.
The company’s subsidiary in Thailand started operations in 1997. It also has production lines in Taiwan and China.
Shinkong Synthetic Fibers said the artificial fiber sector, including PET bottle grade resin, has showed signs of recovery since May and is expected to grow for the rest of this year.
CURRENT PRODUCTION
Currently, the Thailand plant produces 15,000 metric tonnes of PET bottle grade resin a month, and all of the products are sold on the Thai market. Taiwan’s production lines churn out 30,000 metric tonnes of PET bottle grade resin a month for both local and overseas markets.
Earlier this year, Shinkong Synthetic Fiber chairman Wu Tong-sheng (吳東昇) said that with the global economy on the way to recovery, the inventory level in the China market has been on the decline, adding that his company was likely to see its bottom line improve later this year given such favorable conditions.
Shinkong Synthetic Fiber last year posted NT$1.42 billion (US$47.33 million) in net profit, or NT$0.55 per share, compared with NT$1.59 billion, or NT$0.71 per share, in 2011.
In the first quarter of this year, the company’s earnings per share stood at NT$0.11, up from NT$0.04 over the same period of last year.
The textile maker is looking beyond the artificial fiber business, aiming to enter the telecommunication industry, Wu said.
It has filed an application with the government to bid for a 4G license to operate in Taiwan.
A total of seven business groups, including Shinkong Synthetic Fiber, Hon Hai Group (鴻海集團), Chunghwa Telecom (中華電信), Taiwan Mobile (台灣大哥大) and Far EasTone Telecommunications (遠傳電信), will be competing for 4G licenses at an upcoming auction.
4G LICENSE
Wu said that if his company secured a 4G license, it would begin to set up base stations next year, expecting its 4G network to become operational in the second half of 2015.
He said the company could break even in 2017 and start to make a profit in 2018 at the earliest.
According to Shinkong Synthetic Fiber, the 4G operations are expected to cost the company about NT$20 billion, including the NT$4 billion to NT$5 billion expenditure to build at least 3,000 base stations.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RSS