December 03, 2008

Walsin Lihua to intensify investment in mainland

It is reported that Taiwan Lihua is optimistic to the outlook of domestic electrical wire and cable and stainless steel industry, deciding to add an investment of nearly USD 50 million to mainland so as to enrich its operation funds on March 30th and another over USD 2.31 million will be invested in the name of Walsin Special Steel for the acquisition of 22.99% stock right of Jiangyin Yuantai Stainless Steel Company.

Director of Walsin Lihua explained global nickel price last year soared to more than USD 50,000 and then plunged sharply at the end of second quarter, which made the company suffered a serious loss in stainless steel sector in Q3 last year.

Nickel price started to rebound in the fourth quarter, along which the losses of Huabang Electronic, Walsin Lihua had transferred up to over NTD 900 million of investments causing its profits to severely shrink.