Wed, Jun 24, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer

STEELMAKERS

Auto investment approved

China Steel Corp (中國鋼鐵), the nation’s biggest steelmaker, yesterday said its board approved several investment plans, including a proposal to invest a combined NT$492 million (US$15.87 million) in existing auto venture Honley Auto Parts Co Ltd (宏利汽車部件公司) and on forming a new car part venture with Honley and China Automotive Engineering Research Institute Co (中國汽車工程研究院) in Chongqing, China. The board also approved a plan to increase its holding in Vietnamese steelmaking venture Formosa Ha Tinh Steel Corp (台塑河靜鋼鐵) via a subsidiary.

PLASTICS

Nan Ya bullish on earnings

Nan Ya Plastics Corp (南亞塑膠), a unit of Formosa Plastics Group (台塑集團), yesterday said the company’s new polyethylene terephthalate manufacturing facilities for optical use films are expected to begin operations in the third quarter of this year. Together with new production lines set to begin operation in China and Vietnam by the end of this year, the company expects its revenue to continue to grow this year with stable earnings prospects, Nan Ya chairman Wu Chia-chau (吳嘉昭) said at the company’s annual general meeting in Taipei. Shareholders approved the company’s plan to distribute a NT$2.3 cash dividend, which translates to a dividend yield of 3.23 percent on yesterday’s closing share price of NT$71.5.

TIREMAKERS

Kenda eyes brighter outlook

Tire manufacturer Kenda Rubber Industrial Co (建大輪胎) yesterday said business in the second half of the year is expected to be better than the first half, as the negative impact of a port strike on the US west coast vanishes. In the first five months of the year, cumulative sales fell 6 percent year-on-year to NT$13.26 billion, according to a filing with the Taiwan Stock Exchange. The Changhua County-based company also plans to increase the production capacity of its Indonesian plants in the fourth quarter of this year and its Vietnamese factories later next year to meet rising demand in the US, Kenda chairman Yang Ying-ming (楊銀明) told shareholders.

BIOTECHNOLOGY

FSC to probe Zodic Light

The Financial Supervisory Commission (FSC) yesterday said it would launch an investigation into alleged fraudulent stock trading involving biotech firm Zodic Light World Technology Inc (兆良科技), after prosecutors searched Zodic and its subsidiary and affiliates, summoning 14 people for questioning over the alleged fraud. Local media reported that Zodic chairman Hubert Lo (羅栩亮) set up the company in 2011 and claimed it had partnered with Chirana Group in Europe and signed a cross-border cooperation agreement with Honduras. However, prosecutors discovered that Zodic is only a shell company without any production facilities.

CHIPMAKERS

UMC, ARM to cooperate

United Microelectronics Corp (UMC, 聯電) said on Monday it was joining with UK-based ARM Holdings PLC and US software developer Synopsys Inc to develop advanced 14-nanometer process technology and speed up the pace at which it serves its clients. Analysts said the move to team up with ARM and Synopsys is expected to help UMC achieve its target of launching commercial production of chips made using the 14-nanometer FinFET process next year, closing its technology gap on rivals Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co.

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