E United Group plans NT$50 billion investment in the U.S.
Taipei, March 22 (CNA) E United Group, one of Taiwan's leading conglomerates, announced on Wednesday that it plans to invest about NT$50 billion (US$1.64 billion) to build a steel factory in the United States.
The investment will include the installation of two steel arc furnaces in a southeastern U.S. state, E Group founder Lin I-shou (林義守) disclosed to the media during a commercial property event in Taipei.
Following negative environmental impact assessments in Taiwan more than a decade ago, E United decided to set up a steel venture in China which has since grown to roughly the same size as its domestic production.
Lin said steel investments in China have reached saturation point, while the feasibility of expanding its facility in Taiwan is slim due to environmental red tape.
The plan for an investment project in the U.S. is mainly based on the company's long term development strategy for expansion and future sustainability, according to E United.
Lin said in early March, the company submitted an investment proposal to U.S. authorities detailing the land, water and power supplies required for the project.
Although there were no immediate details about the projected location of the investment, the production complex will likely be about 500-600 hectares in size.
"We will send a delegation on an inspection tour to the U.S. in the coming weeks," Lin said.
Nearly a decade ago, E United was keen to invest in a steel mill in Vietnam, but a variety of problems resulted in the project being scrapped.
Commenting on E United's ongoing investment in Indonesia, Lin said the project is moving ahead smoothly.
Based in Kaohsiung, the company also operates schools, hospitals, shopping malls and hotels across Taiwan.
(By Shu Wei and Ko Lin)
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