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Taiwan Glass declares dividend

Taiwan Glass Industry Corp., a major manufacturer of glass fabric and glass products, will pay out a dividend per share of NT$ 1.61 – NT$ 0.81 in stock and NT$ 0.8 in cash – for last year“s business …

Taiwan Glass Industry Corp., a major manufacturer of glass fabric and glass products, will pay out a dividend per share of NT$ 1.61 – NT$ 0.81 in stock and NT$ 0.8 in cash – for last year“s business operation, consented to by the shareholders at a meeting on 30 March. The company had record revenue of NT$ 13 billion last year. Despite a non-operating loss of NT$ 1.06 billion from securities investment, the company“s after-tax profit of NT$ 2.242 last year was its best performance in three years. Net earnings per share last year came to NT$ 2.02. After the distribution of stock dividends, the company“s capital is expected to rise to NT$12 billion. Taiwan Glass has indirectly invested in a glass manufacturer in mainland China, with a second production line at the site to be set up in the fourth quarter of 2002. Annual capacity is expected to be of 180,000 metric tons, at an estimated total cost of US$ 60 million. The operation in China began in 1996 and currently has a production line with an annual capacity of 140,000 metric tons. Taiwan Glass will invest US$20 million from its equity fund and US$ 40 million from overseas loans. The company also decided to indirectly invest US$ 100 million to establish a factory for glass fabric with an annual production capacity of 20,000 metric tons in Kunshan of Jiangsu Province. Of the investment, US$ 35 million will come from Taiwan Glass“ equity fund and the remaining US$ 65 million will be lent by overseas banks. The factory will start operations in the first quarter of 2003. Factories established by Taiwanese enterprises in mainland China manufacturing copper-clad laminates (CCL), the main material for PCBs (printed circuit boards), have increased their demand for glass fabric used in CCL. In addition, Taiwan Glass will expand its domestic glass fabric factory located in Changhua County, central Taiwan, with an investment of NT$ 3.3 billion. The expansion will be completed in the fourth quarter of this year.

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