China Taiwan Far Eastern New Century Acquires M & G West Virginia Assets
Taiwan FENC successfully acquired £ 800 million stake in M & G Inc.'s Apple Grove plant in West Virginia, Ohio, and its R & D facility in Ohio for $ 33.5 million. M & G filed for bankruptcy in October 2017.
At a news briefing on February 2, Taiwan Far East New Century executives said the deal was "a strategic move" and will be the first production base of the Far East in the United States in the new century. They added that the New Century Far East is the first PET manufacturer in Asia and one of the top five global producers, and the acquisition has several considerations.
The executive said the United States is one of the major PET markets in the Far East in the new century in terms of sales, while the U.S.-based factory will be close to its customers. They added that the United States has been increasing non-tariff trade barriers. For example, in recent years, U.S. producers have been initiating anti-dumping litigation against Taiwanese PET manufacturers.
Far East New Century executives said that in terms of production, the United States has formed a complete upstream raw material supply chain. Tax reform bill reduces corporate tax rate. As well as cheaper energy costs and the appreciation of the Taiwan Strait against the U.S. dollar, all these factors mean that it is now a golden opportunity to invest in the United States.