 2012-09-27 |
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Liberty Times
In recent years, YC has been integrating the upstream sector of the plastics industry and expanding its business scope. In 2011, YC formally entered the upstream plastics sector by investing in ACHEM (Jiangsu), which will produce 80,000 tons of acrylic acid, 80,000 tons of butyl acrylate, and 20,000 tons of maleic anhydride. Yesterday, ACHEM successfully secured a $100 million syndicated loan. YC's Chairman, Li Chih-Hsien, also stated that starting next year, YC’s market share in OPP and PVC will be the largest globally. On the day of the announcement, YC’s stock price closed slightly down by NT$0.15 at NT$23.30.
In recent years, YC has pushed forward several major investment projects in Taiwan and China. Among these, ACHEM is the group’s largest single investment project since its establishment. It is planned to be executed in two phases, with the first phase of construction having begun in July 2012 and expected to be completed and operational by the fourth quarter of 2013. The acrylic acid and ester products produced by ACHEM will not only be used internally within the YC group but will also be sold to other manufacturers and gradually expand into overseas markets. According to estimates, this capacity could contribute approximately NT$5 billion to annual revenue based on current prices.
Li Chih-Hsien pointed out that YC is an internationally renowned professional adhesive tape manufacturer. The company’s OPP tape production is the largest in the world, with a global market share of about 10%, and its PVC tape production holds a global market share of about 12%. If the expansion plan in Dongguan’s Hengli Town proceeds smoothly, YC will have the opportunity to become the global leader in PVC tape production next year. This means that starting next year, YC will have the largest market share globally in both OPP and PVC.
As a result, YC’s board has approved a NT$1 billion fundraising plan (including convertible bonds and cash capital increase) to secure operating capital and improve the financial structure. Once completed, this will inject growth momentum into its aggressive expansion plans. In addition to overseas investments, domestically, the Yangmei plant is also under construction and is expected to start producing PE protective tape and hot-melt adhesive packaging tapes early next year, preparing for deeper penetration into the European and American markets. |
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