Asahi Chemical Industry
Co., Ltd. (President, K. Yamamoto) and Formosa Plastics
Corporation (President, C.T. Lee) today announced
the
signing of a mutual agreement for the establishment
of a joint venture company in Taiwan for production
and sale of Roica* spandex yarn. The both parties will
soon begin procedures for the establishment of
the joint
venture, with its operations to begin at the end of
1999.
In line with the growing demand for
spandex (polyurethane elastic fiber) worldwide and particularly
in East Asia, Asahi Chemical has long been studying
the possibility of establishing an overseas production
base for Roica*, to expand this core business. Asahi
Chemical has been considering Taiwan as the most promising
location for this purpose, in view of its large demand
for spandex yarn, which is largely met by imports, and
the established Roica* marketing base already held there
by Asahi Chemical.
Formosa Plastics, one of Taiwan’s leading
corporations, initiated the discussion with Asahi Chemical
concerning the possibility of a partnerships in the
field of spandex two years ago. Joint studies that followed
showed the joint endeavor to meet the interests of both
parties. It will provide the opportunity both for Formosa
Plastics to enter the spandex business and for Asahi
Chemical to expand its Roica* business.
Both companies, regarding this JV as
the production base of commodity type Roica* in East
Asia, expect that the JV will advance the worldwide
development and growth of the Roica* business, in close
collaboration with Asahi Chemical’s Moriyama factory.
The partnership between Formosa Plastics
and Asahi Chemical is close and long-standing, beginning
with the 1968 establishment of their joint venture,
Tai-Shih Textile Industry Corporation, for spinning
and dyeing of acrylic fibers. It will be further strengthened
with the establishment of this new joint venture company.
Corporate Profile of New Joint Venture
| Name: |
Formosa Asahi Spandex
Co., Ltd. |
| Capital: |
800 million NT dollars
(approx. 3,200 million yen) |
| Shareholders: |
50%, Formosa Plastics
50%, Asahi Chemical |
| Total investment: |
Approx. 10,000 million
yen |
| Production capacity: |
Approx. 5,000 tons/year
of Roica* yarn
(integrated production from PTMG) |
| Scheduled start-up: |
End of 1999 |
*Registered trade mark of Asahi Chemical
Industry Co., Ltd.
|
