DUPONT IN DEAL TO MAKE NYLON FIBER IN TAIWAN
Byline: Michael McNamara
NEW YORK — Continuing the global expansion of its $4.2 billion nylon fiber business, DuPont said Wednesday it has entered into a joint venture with Far Eastern Textile Ltd. (FETL), Taipei, to produce and market textile nylon fiber in Taiwan.
The joint venture, in which DuPont has a 50 percent stake, will be known as DuPont-Far Eastern Co. Ltd.
Under terms of the agreement, DuPont said it is investing about $100 million to construct a type 6,6 nylon plant in Kuan Yin Industrial Park, Taoyuan County, Taiwan. The plant is expected to begin production in mid-1996 and will have an annual capacity of about 12,000 metric tons (26.4 million pounds). A DuPont spokesman said the capacity of the plant can “easily be doubled if necessary.”
“This project is key to DuPont’s strategy to expand in the growing apparel market in Taiwan and Asia,” said Dave Colcleugh, vice president and general manager, DuPont Nylon Asia Pacific.
FETL, with annual sales of $843 million, manufactures polyester and also spins and weaves fabrics. It’s parent company, Far Eastern Group, is a $5 billion conglomerate, with interests in textiles, cement, shipping, retailing and banking.
As reported, another DuPont joint venture, Thapar DuPont Ltd., is slated to begin construction later this month for a type 6,6 nylon plant in Keri, in the Indian state of Goa.
Thapar DuPont is a joint venture between DuPont and the Thapar Group of New Delhi.
Last year, DuPont South America and Fibra, a member of the Vicunha Group in Brazil, entered into an agreement to supply textile nylon to the South American market. In July 1993, DuPont purchased ICI’s European nylon business, which included several nylon plants located throughout Europe.
In addition the plants acquired from ICI and DuPont’s four U.S. nylon plants, DuPont also owns nylon facilities in Melbourne, Australia; Uentrop, Germany, and Monterrey, Mexico.