為維持公司長期競爭力，遠東新世紀積極拓展差異化產品銷售與研發，包括擴大Recycled PET下游應用領域，並計畫擴建Recycled PET新產能，以滿足品牌客戶需求。此外，瞄準中國13億人口衛生醫療商機與先進國家高齡照顧需求，持續擴建衛材纖維產線。看好車材產業帶動的龐大商機，近年擴建尼龍6,6工業絲與輪胎簾布產能，產品已陸續通過客戶認證，發展高值化車材領域產品。
遠東新世紀在全體同仁努力下，永續治理績效備受各界肯定，獲選為富比士雜誌（Forbes）全球500大最佳雇主、入選MSCI ESG Leaders Indexes永續指數A級，更在「2017臺灣企業永續獎」蟬連「年度最佳報告」最大獎，並囊括「TOP50臺灣永續企業獎」、「永續水管理獎」、「社會共融獎」、「創新成長獎」、「循環經濟領袖獎」等五項大獎，創下歷年CSR最佳紀錄。
2018 FENC Annual General Shareholders’ Meeting
Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) held its 2018 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium at 9:00 AM on 29 June with Chairman Douglas Tong Hsu presiding. During the meeting, the management team reported the 2017 financial results and the operating strategies of key businesses – production, investments, and property development.
FENC’s 2017 consolidated revenue reached NT$217.8 billion (US$7.3 billion), a 1% growth YoY, whilst net income attributable to shareholders of the Company was NT$8.1 billion (US$270 million), a 28% growth YoY, or an EPS of NT$1.61 (US￠5.39). The cash dividend of NT$1.2 (or US￠4.02) per share , a record high in the past three years, was accepted during the meeting. The dividend yield is around 4.2% based on the stock closing price of June 28, 2018. FENC also outperformed in 1Q18, as its consolidated revenue reached NT$51.5 billion (US$1.7 billion), a 2% growth YoY, whilst net income attributable to shareholders of the Company was NT$2.5 billion (US$83 million), a 92% growth YoY.
Production Business: Solid Growth Momentum
1. Accelerate Globalization: Build Up the First Production Site in the U.S.
Targeting the U.S. huge consumer market, FENC acquired Mossi & Ghisolfi’s (M&G) assets in West Virginia with a PET capacity of 360,000 tons per year and a R&D center in Ohio. The Company has also formed a joint venture with two other international producers to acquire M&G’s integrated PTA/PET assets currently under construction in Corpus Christi, Texas, with annual capacity of PTA 1.3 million tons and PET 1.1 million tons. This is not only to access the U.S. domestic market by removing tariff barriers, but also to secure cheaper feedstock and utility costs as well as to enjoy the benefits of the recent tax reforms. The West Virginia PET plant is planned to start operation in the third quarter 2018.
2. Take Advantage of the Favorable Investment Climate: New Capacity Ramp up in Vietnam
FENC has established a comprehensive polyester supply chain in the Greater China area and is to expand new capacities in Vietnam. Currently, the new PET line of 400,000 tons per year is slated to start operation in the third quarter this year, and the phase II of dyeing and finishing plant, polyester filament and staple fiber plants are under planning in the Vietnam production site. During the wave of global protectionism, FENC will flexibly adjust its production and sales structure of each site to maximize the operating profits by taking advantage of Vietnam’s favorable investment climate and servicing the U.S. clients locally with its new U.S. plants. After the new PET capacity ramp up in the U.S. and Vietnam this year, FENC will become one of the Top 3 PET producers in the world.
3. Develop the 2nd Growth Curve: Focus on Green, Hygiene and Automotive Materials
To sustain FENC long-term competency, the Company has expanded and developed high value added products, such as enlarging the downstream applications of Recycled PET. In order to meet brand clients’ demand, FENC is planning to expand new capacity of Recycled PET. Additionally, with an eye on opportunities in healthcare for China’s 1.3 billion population and the needs of the elderly in developed countries, FENC has continuously expanded its production lines of hygiene fibers. Aiming at the growth potential of the automotive materials market, FENC has raised its capacity of nylon 6,6 industrial yarns and tire cord fabrics, while receiving quality certifications from clients.
4. Pursue Industrial Upgrades: Build Industry 4.0 Smart Factories
FENC is introducing a variety of latest equipment and manufacturing processes in order to build an integrated smart manufacturing supply chain from upstream petrochemical, polyester to downstream textiles businesses. For example, utilizing 3D virtual technology simulates the actual environment for training or maintenance preparation to reduce the incidence rate of workplace injury. Also, Hsinpu Chemical Fiber Plant has built an intelligent power management system, which could monitor the electricity data of each production line effectively to reduce the utility costs. The concept of industry 4.0 is implemented in the Vietnam Dyeing & Finishing Plant and automatic guided vehicles (AGV) systems are adapted to move and transport items in the production process of apparel plants. The Company has improved production efficiency significantly through its R&D efforts in developing the automation systems.
Property Development: Develop Properties to Generate Greater Value
Currently FENC has total land holdings of 570,000 pings (1,900,000 square meters) in Taiwan, the majority of which are located in prime areas of northern Taiwan. The Taipei Far Eastern Telecom Park (Tpark) project in Banqiao of New Taipei City is one of FENC’s development priorities. After the completion of the phase I plan, the Company has entered the second phase of the Tpark’s construction. The IDC building and the second R&D building broke ground last June. In addition, a premium residential project located inside Tpark, built by Far Eastern Construction, is planned to launch its pre-sale, with a gross floor area of more than 7,000 pings(23,000 square meters), which is expected to generate substantial income.
Diversified Investment: Branch Out to Drive Profit Growth
The majority of the Company’s investment portfolio is listed companies on the Taiwan Stock Exchange with proven track records, including Far EasTone Telecommunications Co. Ltd., Far Eastern Department Stores Limited, Asia Cement Corporation, Oriental Union Chemical Corporation, Everest Textile Corporation Limited, and Far Eastern International Bank, thus providing the Company consistent dividend and investment income each year. In 1Q2018, the total “net income attributable to shareholders” of the aforementioned six companies was 35% higher than the corresponding period last year.
Social Responsibilities: Ongoing Sustainable Development
“With collective efforts from our employees, FENC has received great recognition for our sustainability achievements”, mentioned by the management team. FENC has been nominated by Forbes as one of the world’s top 500 best employers and is a constituent of the MSCI ESG Leaders Indexes (MSCI ESG Rating - Industrial Conglomerates: A). The Company also won the “Best CSR Report of the Year in 2017” of Taiwan Corporate Sustainability Awards (TCSA) in consecutive years, and was granted “TOP 50 Sustainable Corporates Award”, “Sustainable Water Management Awards”, “Social Inclusion Award, Growth through Innovation Award”, and “Circular Economy Leadership Award” from TCSA.
“With a solid foundation in the industry over six decades, we formed our ‘sustainability blueprint’ in 2017 as the strategy to guide us and lead the industry moving forward,” said the management team. #