FPG to Set Up Second Industrial Park in Vietnam

Taipei, Sept. 22, 2005 (CENS)--Formosa Plastics Group (FPG), Taiwan's leading industrial conglomerate, has resolved to set up a second industrial park in Vietnam as it has begun making profits from the investments in the first industrial park there.

FPG said it has begun making profits from the investment in a power plant in Vietnam since July. The power plant, with total installed capacity of 150,000 kilowatts, is invested in by the US$480 million Formosa Industrial Corporation whose major shareholders include FPG's three subsidiaries--Nan Ya Plastics Corp., Formosa Chemical & Fiber Corp., and Formosa Taffeta Corp.

FPG said it has selected a site of 450 hectares in the outskirts of Ho Chi Minh City for the construction of the second industrial park. The group estimated it would begin courting firms to station in the park soon after the first quarter of next year. The establishment of the second industrial park is expected to help the group garner handsome earnings next year.

Formosa Industrial Corporation's first industrial park occupies a land area of 300 hectares located in Jentse, near Ho Chi Minh City, the largest of its kind there. The company has used 100 hectares as a production site for spun yarns, polyester, filaments, and a power plant and a petrochemical plant. The remaining land area of 200 hectares is reserved for outside firms. So far a total of 22 firms have stationed in the industrial park.

FPG said it plans to set up three coal-fired power plants in Vietnam, with one each in Haiphong, Hanoi and Pingyang. The group noted the power plants would not only offer stable power supply to meet the need of the firms located in the industrial park but would also sell excess electricity to the state-run Vietnam Power Company.