Formosa Chemicals & Fibre Corp (台塑化纖) and Nan Ya Plastics Corp (南亞塑膠) plan to invest in a US$480 million textile complex in Vietnam, Formosa Chemicals managing director Wang Wen-yuan (王文淵) said at the annual general shareholders meeting on Friday in Taipei.
Formosa Chemicals wants to reorganize its business by moving low-end processing operations to Vietnam, where wages are as low as 1/20th of Taiwan's wages, Wang said.
The textile complex will consist of textile-fiber and polyester factories and power-generation plants, the company said. Formosa Chemicals and Nan Ya
Plastics will each hold a 42.5 percent stake in the complex, which will be located next to Ho Chi Minh City in the south of the country.
Full production at the complex is expected by the first quarter of next year. Formosa Chemicals and Nan Ya Plastics are units of Taiwan's largest industrial group, Formosa Plastics Group (
Separately, Wang declined to give a full-year earnings forecast for the company. Formosa Chemicals reported net income more than doubled to NT$7.41 billion in the first quarter from NT$3.38 billion a year ago.
Formosa Chemicals shares rose 0.6 percent to close NT$47.90 on the TAIEX on Friday.
The stock dropped 16 percent this year, compared with the key benchmark index's 4.2 percent gain.
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