Leading industrial papermaker Cheng Loong Corp (正隆紙業) plans to increase the capacity of its Vietnamese operations to meet growing demand in the Southeast Asian country.
“We plan to invest US$1.05 billion over 10 years to make Vietnam our second-largest production base by emulating our successful experience in Taiwan,” a company official said by telephone yesterday.
Cheng Loong plans to increase output at its paper and paperboard mill in Vietnam’s Binh Duong Province from an annual output of 300,000 tonnes this year to about 750,000 tonnes next year, said the official, who asked to remain anonymous.
The mill’s utilization rate is expected to rise from 75 percent this quarter to 90 percent later this year, he said, adding that 70 percent of the mill’s output is for the domestic market, while 30 percent goes to overseas markets such as China.
The company also plans to construct a corrugated packaging plant near the Binh Duong mill in the next few years and would spend US$10 million to establish another packaging plant in Bac Giang Province, close to Hanoi, he said.
Overall, the company expects to have one paper mill and five packaging plants in Vietnam, he added.
Revenue generated from Vietnam is forecast to reach about NT$6 billion (US$192 million) this year, or 12 percent of total sales, compared with last year’s NT$2.8 billion, or 7 percent of total sales, the official said.
Vietnam sales are expected to remain steady next year, but grow significantly in 2022 once the company adds new production lines for industrial and household paper, reaching a total capacity of 1.05 million tonnes at its Binh Duong mill, he said.
The company’s new smart packaging plant in Kaohsiung’s Yanchao District (燕巢), worth NT$2.08 billion, is expected to begin operations in 2022, Cheng Loong said.
The company has four paper mills, seven packing plants and one form and packaging materials plant in Taiwan, which contributed about 70 percent of total sales last quarter, while its nine packing plants in China accounted for about 22 percent.
Second-quarter net income dipped 42.86 percent annually to NT$399.97 million due to declining non-operating income, with earnings per share of NT$36, Cheng Loong said.
Revenue fell 8.89 percent to NT$9.74 billion, but gross margin climbed from 20.64 percent to 21.72 percent thanks to its increasing array of paper products, the company said.
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS