 2012-04-03 |
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Reported by Peng Xuan-Yi, Commercial Times
YC (4306) and ACHEM (1715) are jointly investing over NT$2 billion to build a new petrochemical plant in Jiangsu, China. The new facility, covering 200 acres, will see YC and ACHEM invest $49 million and $20 million respectively in phases to develop the first stage of the WanChou Petrochemical (Jiangsu) plant.
In addition to the plant construction, the group is actively expanding its packaging material business. Last year, the "Package Master" chain had 20 locations across Taiwan and China, generating annual revenue of approximately NT$200 million. This year, the company plans to increase the number of stores to 30 by mid-year. Based on last year's performance, the packaging business is expected to achieve annual revenue of NT$300 million, a 50% increase.
ACHEM's Dongguan plant currently operates a PVC tape production line with an annual capacity of 7 million square meters. The company is acquiring an additional 100 acres of land to expand the plant, which will increase production capacity by 50%, adding 3.5 million square meters of PVC tape capacity.
To meet the needs of international clients and enhance cost competitiveness, YC is advancing its upstream investment in petrochemical raw materials following its successful integration from downstream tape to upstream BOPP film investments. The new plant in Jiangsu will be developed with a shareholding of 80% by YC and 20% by ACHEM.
YC plans to leverage its vertical integration strategy, which includes upstream raw material production, midstream processing, and downstream distribution, to enhance resource efficiency and reduce costs.
The "Package Master" chain, a joint venture between YC and ACHEM, will provide product distribution, selling both proprietary and international brands like 3M. By the end of March, the number of locations is expected to reach 25, with 10 in Taiwan and 15 in China. The company aims to expand to 30 locations by the second quarter. |
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