Announcement of IFC Investment in Asia Cement Corporation and Oriental Chemical Fiber Corporation, Republic of China on June 29, 1970

,. FOR IMMEDIATE REL~ASE --.i:· I ~~.INTERNATIONAL FINANCE CORPORATION ·r• a ~:_,a, H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE; EXECUTIVE 3-6360 IFC News Release No. 70/17 Subject: Investments in Asia Cement Corporation June 29, 1970 and Oriental Chemical Fiber Corporation, Republic of China The International Finance Corpor~tion, of the World Bank Group, today announced investments in the Republic of China to expand cement production and help finance a new synthetic fiber enterprise. The IFC investments are a $3.0 million loan and $1.22 million in equity for Asia Cement Corporation, and a $3.0 million loan to Asia Cement's subsidiary, Oriental Chemical F~ber Corporatiorl, both of Taipei. The investments will h~lp Asia Cement imp~emenf: a. $14.47 million equivalent • project to increase cement.output from 900,000 to 1.7 million metric tons a year and establish Oriental Chemical Fiber Corporation. Oriental Chemical Fiber Corporation is to be a $14. 32 million equivalent company with an annual production capacity of 7,500 metric tons of polyester staple fiber. The expansion of Asia Cement is needed to meet growing domestic demand and maintain cement exports, one of the country's important foreign exchange earners. Oriental Chemical Fiber's output will substitute for synthetic fibers now imported and help augment China's net forei~n exchan~e earni~gs from exports of textiles and textile goods. Asia Cement is a member of the Par Eastern Textile Group of companies, one of the largest business groups in the Republic of China. The Group is controlled by Mr. Y.Z. Hsu, a prominent Taiwan businessman, and his associates. • (more) • _, IFC News Release No. 70/17 -- Republic of China - 2 - In addition to the IFC investment, the expansion of Asia Cement is being financed by a combination of increased equity investment by employees and share- holders, a local bank loan, internal cash generation and suppliers' credits. The equity of Oriental Chemical Fiber has been subscribed by Asia Cement and the Y.Z. Hsu Group. IFC and China Development Corporation loans, together with suppliers' credits, complete the financial requirements. The Republic of China joined IFC last year and the two investments are IFC's first in that country. II II II •