Plastic material maker Asia Polymer Corp (亞聚), a subsidiary of USI Corp (台聚), is to switch production lines from low-density polyethylene (LDPE) to ethylene-vinyl acetate (EVA), as EVA prices show stability.
EVA is used in foam rubber for sneakers, casual shoes and solar panel film, while LDPE is used in plastic bags, plastic containers and computer components.
“We will increase EVA output by using production lines originally used to produce LDPE,” Asia Polymer business manager Huang Ko-ming (黃克名) said at an investors’ conference in Taipei on Tuesday.
The price of EVA has been relatively stable over the past two years at about US$1,500 per tonne, while the price of LDPE — at about US$1,050 per tonne in March — has been falling since the second half of last year, the company said, adding that the stable price of EVA means a higher gross margin.
The firm has a positive outlook for this year, as demand for EVA remains strong thanks to increasing sales in the sneaker, casual shoe and solar energy markets, it said.
To meet growing demand, the company would next year finish construction of a factory in Gulei, China, Huang said.
The new factory — with an annual EVA output of 300,000 tonnes — would be a major boost to annual output, he said.
The company had about 150,000 tonnes last year of combined EVA and LDPE production.
“Since last year, we have been changing our main output from LDPE to EVA, as the price of polyethylene, a major ingredient in LDPE, stayed at a record high in the first three quarters of last year,” Huang said.
The price of polyethylene is expected to be more stable this year, but total shipments of EVA increased 33 percent last year, while shipments of LPDE fell 28 percent, as EVA’s gross margin remains higher than LDPE’s gross margin, the company said.
Asked about the effects of US-China trade tensions, Asia Polymer said that as a midstream company, it faces limited effects from the trade spat, but it plans to closely monitor fluctuations in raw material costs and foreign-exchange rates.
Cumulative revenue in the first four months of the year increased 26.88 percent to NT$2.33 billion (US$73.71 million), compared with NT$1.84 billion a year earlier, the company said, adding that EVA shipments in the first quarter rose 90.51 percent year-on-year to 24,919 tonnes, while LDPE shipments fell 17.87 percent to 11,526 tonnes.
Net income surged 65.22 percent to NT$136.7 million, from NT$82.74 million a year earlier, or earnings per share of NT$0.25 from NT$0.15, while gross margin climbed 4.48 percentage points to 10.35 percent, thanks to increased EVA output, the company said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion