Economy

Japan investment project kicks off in Yunlin

The newly opened Furukawa Electric Copper Foil Taiwan Co. Ltd. plant is set to play a central role in developing a cluster for electric vehicle components in central Taiwan. (Courtesy of MOEA)

• Publication Date：07/12/2012
• Source： Taiwan Today
• By  Meg Chang

A Japan-invested electrodeposited copper foil plant opened July 12 in Yunlin County, auguring well for Taiwan’s prospects in the lucrative global automobile lithium battery industry.

Situated in Yunlin Technology-based Industrial Park, the factory is operated by Furukawa Electric Copper Foil Taiwan Co. Ltd., the local subsidiary of Tokyo-headquartered Furukawa Electric Co. Ltd. The Japanese firm is a leading producer of copper foils for automobile lithium batteries, supplying 40 percent of the global market.

The NT$2.5 billion (US$84.75 million) central Taiwan facility is expected to produce 500 tons of cooper foil per month and create 70 jobs for the locals, according to the Ministry of Economic Affairs.

“We believe the plant will be instrumental in developing an industrial cluster in central Taiwan and helping local outfits bolster their capacity to manufacture key components used in electric vehicles,” an MOEA official said.

Proposed during a February 2011 MOEA-organized investment tour of Japan, the project is widely seen as a sign of Furukawa’s commitment to Taiwan. Under the agreement, the company channeled NT$2.1 billion into a factory for circuit foils that began operations in Taiwan last month.

“Taiwan’s stable electricity supply, reasonable costs and quality labor force are some of the reasons for Furukawa’s decision,” the official said, adding that these benefits took on added luster following the March 2011 earthquake and tsunami that devastated northeastern Japan.

The Cross-Straits Economic Cooperation Framework Agreement (ECFA) is another factor, the official said, as production from the Yunlin facility now enjoys zero tariffs as opposed to 12 percent prepact when exported to the other side of the strait. (JSM)

Write to Meg Chang at sfchang@mail.mofa.gov.tw