Leading industrial papermaker Cheng Loong Corp (正隆紙業) plans to increase the capacity of its Vietnamese operations to meet growing demand in the Southeast Asian country.
“We plan to invest US$1.05 billion over 10 years to make Vietnam our second-largest production base by emulating our successful experience in Taiwan,” a company official said by telephone yesterday.
Cheng Loong plans to increase output at its paper and paperboard mill in Vietnam’s Binh Duong Province from an annual output of 300,000 tonnes this year to about 750,000 tonnes next year, said the official, who asked to remain anonymous.
The mill’s utilization rate is expected to rise from 75 percent this quarter to 90 percent later this year, he said, adding that 70 percent of the mill’s output is for the domestic market, while 30 percent goes to overseas markets such as China.
The company also plans to construct a corrugated packaging plant near the Binh Duong mill in the next few years and would spend US$10 million to establish another packaging plant in Bac Giang Province, close to Hanoi, he said.
Overall, the company expects to have one paper mill and five packaging plants in Vietnam, he added.
Revenue generated from Vietnam is forecast to reach about NT$6 billion (US$192 million) this year, or 12 percent of total sales, compared with last year’s NT$2.8 billion, or 7 percent of total sales, the official said.
Vietnam sales are expected to remain steady next year, but grow significantly in 2022 once the company adds new production lines for industrial and household paper, reaching a total capacity of 1.05 million tonnes at its Binh Duong mill, he said.
The company’s new smart packaging plant in Kaohsiung’s Yanchao District (燕巢), worth NT$2.08 billion, is expected to begin operations in 2022, Cheng Loong said.
The company has four paper mills, seven packing plants and one form and packaging materials plant in Taiwan, which contributed about 70 percent of total sales last quarter, while its nine packing plants in China accounted for about 22 percent.
Second-quarter net income dipped 42.86 percent annually to NT$399.97 million due to declining non-operating income, with earnings per share of NT$36, Cheng Loong said.
Revenue fell 8.89 percent to NT$9.74 billion, but gross margin climbed from 20.64 percent to 21.72 percent thanks to its increasing array of paper products, the company said.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS