Woven fabric maker De Licacy Industrial Co (得力實業) aims to raise the utilization rate at its Vietnamese plant from 60 percent in the first quarter to about 80 percent later this year to meet growing demand from its major customers.
The plant’s three production lines have a total capacity of 4.11 million meters of filament per month and 1.1 million meters of spin per month, a company public relations official told the Taipei Times by telephone yesterday.
“If the plant faces overcapacity later this year or next year, we would outsource orders to nearby factories,” the official said, adding that the company has no further expansion plans for the plant.
The planned increase in output comes as the plant’s first and second production lines achieved full capacity in the first half of the year, after the company’s top three customers increased their orders by 20 percent, said the official, who asked to remain anonymous.
The company’s board of directors on Monday approved a plan to increase paid-in capital by NT$1.1 billion (US$35.4 million) to NT$4.45 billion by issuing 50 million new common shares next month.
“About NT$1 billion will be used to repay bank loans and the remaining NT$100 million would go toward working capital,” the official said.
The company would reserve 15 percent of the new shares’ subscription rights for employees and 10 percent for the public, with the remainder to be made available to existing shareholders, it said in a filing with the Taiwan Stock Exchange.
The company’s cumulative revenue in the first six months of the year increased 12.02 percent year-on-year from NT$4.23 billion to NT$4.74 billion.
De Licacy shares yesterday closed up 1.66 percent at NT$23.65 in Taipei trading. They have climbed 20.05 percent this year.
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