FPG to build stainless-steel plant in Vietnam.

Taipei, Sept. 28, 2009 (CENS) -- Formosa Plastics Group (FPG), Taiwan?s largest petrochemical conglomerate, will invest NT$100 billion (US$3.08 billion at US$1:NT$32.4) to set up a stainless-steel plant in Vietnam, designed for an annual production capacity of two million metric tons.

FPG has been very aggressive to expand its stainless-steel production in China, having built a joint-venture stainless-steel plant in Zhangzhou of Fujian province, which is designed for an initial production capacity of 720,000 metric tons per year and will come online in three years.

With the Zhangzhou Plant's output, FPG will see annual production amount to three million metric tons, allowing the group to challenge E United Group's lead in Asia. Currently E United is Taiwan?s largest manufacturer of stainless steel with annual production capacity reaching one million metric tons.

Also planning to tap carbon-steel manufacturing, FPG looks to build a large, integrated steel mill in Ha Tinh province, Vietnam.

By investing heavily in China and Vietnam will allow FPG to challenge Taiwan's CSC as the island's largest carbon-steel producer.

((BS)) (G)