Far Eastern Textile achieved the unique distinction as the first wholly owned Taiwanese textile maker allowed to operate a purified terephalic acid (PTA) plant in Shanghai.

Speaking to the media, Douglas Hsu, Chairman, Far Eastern Group, informed his company which got approval from mainland Chinese authorities, plans to invest over US $200 million for setting up the Shanghai PTA plant that is slated to go onstream in 2006 during first quarter with an annual output capacity of 600,000 metric tons.

Part of the production will be meant for internal consumption while the rest would be sold in the local markets, Hsu added.

He forecast better prospects for Asia's petrochemical fiber industry stating that his group is well diversified with inerests in spinning, weaving, dyeing to garment manufacturing, since 1998.

Today, mainland China has become the world's largest supplier of textile products and the petrochemical fiber generated in Asia accounts for about half of the global output.

Much earlier than Far Eastern, Tuntex Distinct Corp.(2.7 million metric tons capacity of PTA), one of Taiwan's leading textile manufacturers had already set up its plant named Xiang Lu Petrochemical in Xiamen of Fujian Province as a third partner in the project.

Now, a completely Tawainese owned Far Eastern will officially run a PTA plant in the mainland China.

During the first year of its operation, as per Hsu's forecast, Far Eastern's PTA plant in Shanghai is estimated target 500,000 metric tons in output.

Going by the current price of PTA at US $800 per ton, revenue of the Group will rise to RMB 9 billion next year, opines Hsu.

Fibre2fashion.com