 2003-08-05 |
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YC's New Nylon Film Plant to Begin Production in Mid-2004, with Annual Capacity of 5,000 Tons and Expected Annual Revenue of NT$750 Million
(Economic Daily Report) YC (4306), led by Chairman and CEO Li Zhixian, announced an investment of NT$500 million in a new Nylon Film (BOPA) plant, which is set to begin production in mid-2004 with an annual capacity of 5,000 tons. This will be the first BOPA production line in Taiwan, and it is expected to generate NT$750 million in annual revenue. The start-up of the BOPA plant, along with the second BOPP (Biaxially Oriented Polypropylene) production line at the Ningbo Yashuo Technology Company in China, which is expected to begin mass production by the end of this year, will push YC's revenue from its Taiwan, China, and Vietnam plants to challenge NT$5 billion next year, representing a 61% growth over this year's group revenue target of NT$3.1 billion.
YC has been a rising star in Taiwan's tape industry and has aggressively expanded into the packaging materials sector in recent years. The company’s BOPP plant investment in China, which started production last year, has already become profitable, earning praise in the Taiwanese business community in China. Currently, China’s annual demand for BOPP is 1.3 million tons, with production capacity around 1 million tons. As new production capacity continues to come online, supply and demand are expected to balance out next year, making the BOPP market more competitive. In response, YC has decided to invest NT$500 million in a new BOPA plant in Taiwan to maintain its competitiveness and high profitability.
Li Zhixian explained that BOPA is a high-barrier packaging material with excellent resistance properties, ideal for packaging frozen foods, small bags of rice, and electronic products. With a price of NT$170 per kilogram, BOPA is a high value-added product with significant technical barriers. Taiwan’s annual demand for BOPA is around 4,000 tons, and the market is expanding yearly. Currently, there are no local producers of BOPA in Taiwan, and all demand is met through imports from Japan.
The BOPA plant in Taiwan is under construction in the Changbin Industrial Park, with trial production scheduled for March or April next year and full-scale production expected by June, with an annual capacity of 5,000 tons. In addition to the BOPA plant in Taiwan, YC has also invested US$1 million in a Vietnam plant to produce BOPP tape, scheduled for mass production in September this year. The Vietnam plant will not only produce BOPP tape but also distribute BOPA from Taiwan and BOPP from China, acting as a springboard for YC’s expansion into the ASEAN market.
YC’s revenue targets for this year include NT$1.8 billion from the Taiwan plant, NT$1.2 billion from the China plant, and NT$100 million from the Vietnam plant, with total group revenue expected to reach NT$3.1 billion. The company anticipates a net income of NT$147 million for the year, a 28.9% increase from the previous year, with earnings per share of NT$2.37. With the new production capacity coming online next year, group revenue is expected to challenge NT$5 billion. |
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