Taiwan’s New Domestic Investments Top NT$65 B. in Jan.

Taipei, Feb. 15, 2012 (CENS)--New domestic investments in January topped NT$64.9 billion, up 20% year-on-year, with the largest case being the NT$20 billion project for Tainan shopping center invested by Tainan Textile and Uni-President Enterprises jointly.

There are also two steel-industry investment projects in the month, each at a scale of NT$5 billion, making traditional industry a mainstay for domestic investment in the month, different from the past situation in which the electronics industry played the dominant role in domestic investment.

The investment amount in January equals 5.9% of the goal of NT$1.1 trillion for new domestic investments in the private sector this year, set by the Ministry of Economic Affairs (MOEA).

There were three investment projects exceeding NT$5 billion in scale in January. The largest one is the NT$20 billion joint venture between Tainan Textile and Uni-President Enterprises, for the construction of a shopping center in Tainan. China Steel and Chung Hung Steel plan to invest in Kaohsiung and Changhua, respectively, both at a scale exceeding NT$5 billion. The three projects will call for investment exceeding NT$30 billion, almost half of the total domestic investment in January.

Foreign investments in Taiwan topped US$9.532 billion last year, amounting to 105.91% of the government goal. The MOEA has raised the goal for foreign investments to US$10 billion this year and will endeavor to achieve the target via intensified solicitation for investments from the U.S. and Japan. Chiu Chiu-hui, chief of the metal and electric machinery section, the Industrial Development Bureau (IDB), pointed out that the government will encourage R&D cooperation between Taiwan and the U.S.

The MOEA will push investments in the aviation industry. The IDB reported that in recent two years, major international aircraft and aircraft engine manufacturers have boosted their output, enabling domestic manufacturers in the line, such as Aerospace Industrial Development Corp., to land medium- and long-term orders. To meet market demand, some traditional industrial firms have invested in the development of lightweight materials, such as aviation composite materials and aviation aluminum alloy material.

Chiu said that the aviation targets to invest NT$7 billion this year. Gloria Material Technology Corp., an aviation material manufacturer, has invested NT$2 billion and will expand the investment to NT$12 billion in three years.