 2012-09-26 |
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Taiwan's leading adhesive tape manufacturer, YC Group (4306), has successfully signed a $100 million syndicated loan agreement for its subsidiary, ACHEM. ACHEM will produce acrylic acid and esters, which will be used both internally within the group and sold to other manufacturers, with plans to gradually expand into overseas markets.
The syndicated loan agreement is intended to provide operational and development funding for ACHEM. The signing ceremony was jointly hosted by YC Group President Li Chih-Hsien and Mega International Commercial Bank General Manager Hsu Guang-Hsi. Mega International Commercial Bank is the lead arranger, with First Bank as the co-arranger, and six other major domestic banks participating in the deal.
In recent years, YC has been working to integrate its upstream industry chain and expand its business scope, carrying out several major investment projects in Taiwan and China. In 2011, the company officially entered the upstream plastics sector with an investment in ACHEM (Jiangsu), the largest single investment project in the group's history. The project is planned to be carried out in two phases. The first phase of construction began in July 2012 and is expected to be completed and operational by the fourth quarter of 2013.
Currently, YC ranks second in global market share for PVC tapes at about 12%. If the expansion project for PVC tapes in Dongguan, Hengli Town proceeds smoothly, the company expects to become the global leader in this segment next year.
Today, YC's board also approved a NT$1 billion fundraising plan, including convertible bonds and cash capital increase, to secure operating capital and improve its financial structure. Once completed, this plan is expected to inject growth momentum into its aggressive expansion projects. |
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