TAIPEI (TVBS News) — Formosa Plastics Corporation announced on Wednesday (Feb. 7) that it will invest approximately NT＄318.03 million into Formosa Heavy Industries to purchase production machinery and equipment, aiming at expanding its business operations.
The corporation convened a press conference that included plans to spend NT＄59.58 million on two designation projects and two other initiatives aimed at upgrading and improving manufacturing processes.
The former two provisions will be tabled for approval at the audit committee and board directors meeting on March 6.
This decision comes in the wake of China's “Refining-chemical integration” endeavor, causing a dip in the demand for petrochemicals and plastics, and impacting global businesses, the company stated, which has led to a prolonged adjustment period in the plastics industry.
By announcing the expansion and enhancement of equipment, Formosa Plastics affirmed an increase in the capabilities of carbon fiber and PVC production, which is expected to boost the market positively.
Despite a reduction in shipping days due to the Lunar New Year, the corporation projected in its most recent financial report that post-Lunar New Year would usher in a seasonally high-demand period.
As inflation in Western countries continues to lower and consumer confidence grows, the market is anticipated to warm up, the company commented.
