Sat, Nov 02, 2019 - Page 12 News List

Ministry sees NT$200bn of returning investments materializing this year

BACK IN TAIWAN:Of the 151 investment cases totaling NT$623.6 billion by returning Taiwanese companies, the ministry expects a third to proceed before the year’s end

By Natasha Li  /  Staff reporter

The Ministry of Economic Affairs yesterday said it expects about NT$200 billion (US$6.56 billion) of the approved investments by Taiwanese companies moving production back to the nation to materialize by the end of this year.

The ministry’s statement followed its announcement on Thursday that it had approved two more investment applications: Shuz Tung Machinery Industrial Co’s (旭東機械) NT$900 million and more than NT$200 million from Sunder Biomedical Tech Co (善德生化科技), which plan to expand their capacities in Taiwan.

Including the two latest approvals, the ministry has given the green light to 151 companies’ applications to invest a total of NT$623.6 billion since the beginning of this year, which are expected to create 54,970 jobs, it said.

About a third of this sum should materialize by the end of the year, Ho Kun-sung (何坤松), chief operating officer and spokesman for the ministry’s InvesTaiwan Service Center, told the Taipei Times by telephone.

“We estimated that about NT$200 billion [should materialize] by this year from Taiwanese companies returning to invest in the nation, while another NT$200 billion should materialize by the end of next year,” he said.

The ministry considers new investments as having materialized if the company has bought new land and equipment or has started construction of new factories as stated in its application, center director Chang Min-pin (張銘斌) said.

“That [NT$200 billion] is a practical estimate, as many companies have proceeded,” Chang said.

Shuz Tung, a supplier of machinery equipment to companies such as bicycle makers Giant Manufacturing Co (巨大) and Merida Industry Co (美利達), on Thursday said it plans to set up a smart manufacturing facility near its headquarters at the Central Taiwan Science Park (中部科學園區), which would focus on providing equipment for thin-film transistor liquid crystal displays and related packaging.

The Taichung-based company said its decision was prompted by its customers’ relocation plans.

It would simultaneously expand its existing plant in Taichung, as it is expanding into the aerospace industry, the ministry said, adding that the company would offer 56 job opportunities.

Sunder Biomedical said it is relocating its China orders to Taiwan amid rising trade tensions between the US and China, adding that it would purchase smart machinery equipment for its facilities in Yunlin County and Taichung’s Cingshuei District (清水).

The plan is expected to provide about 25 job opportunities.

Separately, the ministry on Thursday approved applications by four small and medium-sized enterprises to invest nearly NT$1.3 billion.

Bicycle component manufacturer Glory Wheel Enterprise Co (金盛元興業) plans to invest NT$90 million to expand its plant in Taichung’s Daya District (大雅) to develop its electric bicycle business.

Re-Dai Precision Tools Co (銳泰精密工具) is to invest NT$200 million to install a smart production line at its plant in Chiayi, while cold forming auto parts manufacturer Extend Forming Industrial Co (英鈿工業) is to invest more than NT$800 million to add advanced processing equipment to its plant in Kaohsiung.

Yu Hong Steel Industrial Corp (昱鋐實業), which specializes in the manufacturing and design of steel equipment, plans to invest NT$100 million to automate its plant in Pingtung County.

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