Foreign investment projects open in central Taiwan
Two major foreign investment projects commenced operations June 15 in central Taiwan, signaling a resounding vote of confidence in the island’s robust business climate.
Furukawa Circuit Foil Taiwan Corp., a local subsidiary set up in December 1998 by Tokyo-headquartered Furukawa Electric Co. Ltd., opened its second manufacturing plant on the island in Yunlin County, according to the ROC Ministry of Economic Affairs.
The NT$2.1 billion (US$70 million) facility is expected to boost the firm’s monthly cooper foil production from 800 tons to 1,200 tons, with annual output reaching 4.5 billion yen (US$58 million).
First proposed during a February 2011 MOEA-organized business promotion in Japan, the project was lauded at the time as sign of Furukawa’s commitment to Taiwan. Company chairman Hiroshi Isihara signed a letter of intent in October that year with the ministry, pledging investment totaling NT$4.55 billion.
Under the agreement, Furukawa is set to spend a further NT$2.45 billion on a factory for electrodeposited copper foils used in automobile lithium batteries, an MOEA official said.
“Taiwan’s stable electricity supply, reasonable costs and quality labor force are some of the reasons for the company’s decision,” the official said. “Tariff concessions between Taiwan and mainland China under the Cross-Straits Economic Cooperation Framework Agreement [ECFA] are another factor.”
The flagship store of French sportswear supplier Decathlon also started trading in Taichung City on the same day. The outlet is the first stage of an NT$12 billion expansion plan that will see 10 to 12 megastores established islandwide over the next five years.
Taiwan is Decathlon’s second base of operations in Asia behind mainland China, with the Taichung store its biggest outlet in the region to date. In recent years the company has made annual purchases from Taiwan suppliers totaling NT$4 billion.
“Decathlon’s beefed-up operations will result in the introduction of its marketing and sales know-how to Taiwan, along with the creation of more than 100 jobs per store,” the official said.
“The project can only be described as an outstanding example of central government business promotion efforts.” (JSM)