Formosa adds more funds for expansion

Taiwan’s Formosa Heavy Industries Corporation, the largest foreign investor in Dong Nai Province, will raise its capital from $951 million to $1.12 billion to expand operations.

Taiwan’s Formosa Heavy Industries Corporation, the largest foreign investor in Dong Nai Province, will raise its capital from $951 million to $1.12 billion to expand operations.

The Dong Nai Industrial Zones Authority (DIZA) said the firm had increased its capital for the eighth time since it was licensed in late 2001. Its production facilities in Nhon Trach III Industrial Park now include a polyester fiber factory, a yarn spinning facility, a thermo-power plant, a PP factory, a BOPP plant and a cotton factory. In addition, other foreign companies like Pouchen, Nomura, Yeong Jaan, Formosa Taffecta and Chin Well have set up shop around Formosa facilities to supply materials.

Formosa is active in various fields, including petrochemicals, automobiles, motorbikes, energy, electronics, garments, construction, ports and steel. Last month, Formosa Heavy Industries Corporation started work on a deepwater port and a steel complex capitalized at a combined $7.9 billion in the central province of Ha Tinh, becoming the biggest foreign direct investment (FDI) project in the country.

The steel complex, also including a port in Vung Ang Economic Zone, will be developed in two phases with a total production capacity of 15 million tons a year and the 7.5-million-ton first phase will be built in the three years. The port, which will serve the steel complex, will be able to receive vessels of up to 200,000 DWT with annual throughout of around 30 million tons. According to the corporation, the project will become the biggest steel complex in Southeast Asia and one of the 15 largest mills in the world.

In the first seven months, Dong Nai province attracted 58 foreign investment projects worth a total of $1.8 billion. Some operational foreign projects increased capital by more than $600 million.

(Source: SGT)