The investment is to replenish Formosa Ha Tinh’s operational capital, which plans to raise US$500 million in the second installment of its ongoing capital injection project, Taipei Times cited.
Formosa Ha Tinh would see its paid-in capital increase from US$5 billion to US$5.5 billion, a Formosa Plastics official said.
Four of the Group’s members — Formosa Plastics Corp, Nan Ya Plastics Corp, Formosa Chemicals & Fibre Corp and Formosa Petrochemical Corp — each holds an 11.432 percent stake in the Vietnamese unit.
Each company is to pay about US$57.17 million in the second installment in accordance with their shareholdings, separate filings with the Taiwan Stock Exchange said.
Formosa Taffeta Co, the group’s textile affiliate, which holds a 3.847 percent stake, also plans to invest US$19.23 million in Formosa Ha Tinh Steel.
The investment requires board approvals from each company.
In the phase I, Formosa Ha Tinh’s plant will have an installation capacity of seven million tons of steel products a year if its two furnaces achieve full capacity.
The first furnace, which began production in May this year, has an annual capacity of 3.5 million tons, the Group said last week.
In contrast, China Steel Corp, one of the major shareholders of Formosa Ha Tinh, did not show any interest in joining the latest fundraising plan. It did not participate in the venture’s first-round fundraising project.
