Far Eastern New Century Corp (遠東新世紀), a producer of petrochemicals and textile products, yesterday said that it aims to post compound annual revenue growth of 10 percent to 15 percent from this year through 2017 on the back of rising capacity.
HSINCHU PLANT TO EXPAND
The company plans to spend NT$2.99 billion (US$99.8 million) from this year through 2016 to expand its production of polyethylene terephthalate (PET), which is used to make bottles, by 400,000 tonnes a year. The plant is in Sinpu Township (新埔), Hsinchu County, said a company official, who declined to be named.
Total capacity for making PET will reach 2.4 million tonnes a year after the expansion is completed in November next year, he said.
NEW PRODUCTION LINES
Far Eastern New Century is also building two production lines — one in Xinpu and another in Japan, the official said.
The capacity expansion, aiming to produce 70,000 tonnes recycled PET a year, is expected to be completed in the second half of this year, he said.
The company currently has one production line capable of making 35,000 tonnes of the material a year, he said.
Far Eastern New Century is investing NT$17.66 billion in its operations in Guanyin Township (觀音), Taoyuan County, as the company plans to enhance its capacity for making purified terephthalic acid to 3.1 million tonnes a year by the end of next year, compared with 1.6 million tonnes a year now.
Meanwhile, the company has successfully developed, with Coca-Cola Co, 100 percent renewable PET bottles, vice chairman Johnny Shih (席家宜) said at the company’s annual general meeting yesterday.
Shih told shareholders the company was a supplier of knitted fabrics for Nike Inc to make soccer shirts and shorts for the FIFA World Cup. The company also supplied fabrics to Nike in the previous two World Cups in 2010 and 2006, he said.
Of the 10 teams sponsored by Nike this year, Far Eastern New Century made fabrics for the soccer kits of the US, England, Croatia, Brazil and Portugal, according to the company.
“We made fabrics for uniforms in previous World Cups using recycled polyester with a moisture absorption feature. The fabrics we make this year are more advanced in that they are also more elastic,” Shih said.
Shareholders yesterday approved the company’s plan to distribute a cash dividend of NT$1.3 per share and a stock dividend of 2 percent, based on its earnings per share of NT$1.49 last year.
From January through last month, the company reported revenue of NT$96.75 billion, down 1.64 percent from NT$98.36 billion the previous year. Earnings for last quarter fell to NT$1.86 billion, or NT$0.39 per share, from NT$1.91 billion, or NT$0.4 per share a year ago.
Shih said the company should post double digit compound annual growth rate a year from this year through 2017.
As the method to calculate the value of land property changed at the beginning of this year, the company’s assets increased by NT$83.7 billion, increasing its book value per share to NT$37.8 from NT$21.5, Shih said, adding that the value of the company’s assets may rise further after it finishes further development projects.
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