Tue, Nov 14, 2017 - Page 12 News List

Wei Chuan Foods board approves production line move

By Kuo Chia-erh  /  Staff reporter

Wei Chuan Foods Corp (味全食品) yesterday said its board of directors has approved a plan to relocate a plant from Taoyuan to Yunlin County and expects a disposal gain from the asset renewal project.

The facility in Longtan District (龍潭), which manufactures salad dressings and jelly products, contributed nearly 4.5 percent of the firm’s total output value, Wei Chuan said in a statement.

The company expects to make a disposal gain of between NT$430 million and NT$450 million (US$14.24 million and US$14.9 million) from the NT$1.33 billion land transaction, the statement said.

The food maker plans to move the existing production lines and 81 employees from the Longtan plant to another factory in Yunlin’s Douliou City (斗六) within six months, it said.

The relocation would not have a significant impact on operations, Wei Chuan said, without disclosing the expected capacity of its Douliou plant.

The renewal plan is part of the company’s efforts to improve its financial structure, as it has been embroiled in a food safety scandal involving its parent group since 2014.

Aided by improving sales in Taiwan and China, the company emerged from the red in the first quarter of this year, ending 10 consecutive quarters of losses.

Wei Chuan reported net profit reached NT$49.28 million for the first half of this year, compared with net losses of NT$432.78 million in the same period last year.

That represented earnings of NT$0.1 per share, compared with losses of NT$0.86 per share last year.

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