Taipei Fubon Commercial Bank (台北富邦銀行) yesterday inked a contract with Fulgent Sun International Holding Co (鈺齊國際) for a syndicated loan of US$83 million as the shoemaker plans to increase its investment in Indonesia, the bank said.
Fulgent Sun, which supplies sports shoes and functional outdoor shoes to global brands, plans to use the proceeds to establish a new factory in West Java, marking the company’s latest move to transfer its manufacturing base from China to Southeast Asia, the bank said.
Headquartered in Yunlin County, Fulgent Sun operates six overseas production bases — three in China, two in Vietnam and one in Cambodia, company data showed.
“Many manufacturers in recent years have begun transferring manufacturing sites to Southeast Asian countries to reduce operating costs and to avoid geopolitical risks,” the bank said.
“Fulgent Sun’s new investment in Indonesia matches this global trend and will boost the shoemaker’s production and operational efficiency,” it said.
Southeast Asian countries registered an average GDP growth of 5.5 percent last year, according to Asian Development Bank data.
Indonesia, the largest economy in Southeast Asia, has attracted foreign investment with its ample labor resources, the bank said.
Fulgent Sun supplies shoes for more than 50 international brands, it added.
The company reported a record high net income of NT$3.39 billion (US$114.1 million) for last year, up 186 percent year-on-year.
Revenue grew 55 percent year-on-year to NT$24.1 billion, an all-time high, company data showed.
The company earlier this year said that the COVID-19 pandemic has raised health awareness among consumers and drawn their attention to outdoor recreation, giving a boost to demand for sport shoes.
MORRIHAN
In related news, Taishin International Bank (台新銀行), Bank SinoPac (永豐銀行) and other five local banks on Thursday announced that they had provided a syndicated loan of NT$4.3 billion to Morrihan International Corp (茂宣), a subsidiary of semiconductor components distributor WT Microelectronics Co (文曄科技).
Morrihan plans to use the funds to replenish operating capital and adjust its financial structure. It was Morrihan’s first syndicated loan.
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