Probiotics supplier Glac Biotech Co Ltd (豐華) plans to spend nearly NT$376 million (US$12.83 million) to expand the capacity of its Chiayi plant, aiming to create economies of scale, the company said on Thursday.
Glac also announced that its board had approved the distribution of a cash dividend for the first time in the company’s history.
The company is to pay NT$3 per common share.
Glac, a major subsidiary of drugmaker Center Laboratories Inc (晟德), makes and distributes products in Taiwan and China.
It completed the acquisition of Glory Biotech Co Ltd (得榮生技) on Dec. 29 last year to enhance its product lineup in functional foods.
The capital spending announcement is seen as part of Glac’s latest attempt to cement its position in the Taiwanese and Chinese probiotics market through capacity expansion.
The company plans to spend the funds on new equipment to transform the existing facility into a world-class probiotics plant, Glac said in a filing with the Taiwan Stock Exchange.
The company did not disclose a detailed plan for the expansion, but said its board has fully authorized its chairman to carry out the project.
Besides the Chiayi plant, the company also operates a plant in Tainan, while in China, the firm has two plants in Anhui Province and one in Jiangsu Province, according to Glac’s Web site.
The company’s revenue last month jumped 68.99 percent year-on-year from NT$64.37 million to NT$38.09 billion, with sales to Chinese customers contributing more than 70 percent, company data showed.
The company posted sales of NT$778.17 million for the whole of last year, representing a 23.92 percent increase from NT$627.96 million the previous year.
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