FAR EASTERN NEW CENTURY CORPORATION
Previous company name
FAR EASTERN TEXTILE LIMITED
Name change date
Far Eastern Textile Limited is a Taiwan-based company engaged in the manufacture and sale of textiles and textile products. The company has its headquarters located in Taipei, Taiwan. It was established from a merger between Far Eastern Knitting and Taiwan Far Eastern Textile in January 1954. Its shares are publicly listed on the Taiwan Stock exchange under the stock code 1402.
The company has two business divisions namely: Fiber Division and Textile Division. The Fiber Division produces chips, polyester staple fibers, polyester filaments, polyethylene terephthalate (PET) bottles, PET sheets and PET preforms. The Textile Division produces spun yarns, woven greige fabrics, knitting fabrics, industrial fabrics and apparels. Far Eastern Textile is also involved in real estate construction and public infrastructure projects; wireless communications, Internet and international simple resale (ISR) services; and computer software programming. With more than 17,000 employees, the company is the leading producer of polyesters and its related products in Asia and one of the largest producers of polyester polymers and PET resisn in the world.
Far Eastern Textile has operations in China, the United States and Europe. Its customers include Tommy Hilfiger, Abercrombie & Fitch, Levi’s, Express, J. Crew, Carter’s and Federated Department Stores Inc.
Company’s principal activities are the manufactures and sells of textile and related products, and trading of telecommunication products.
Description and history
Far Eastern Textile Ltd was establihed on 13 January 1954. Company’s principal activities are manufactures and sells of fibre, textile, apparel products, polyester fiber, filament, chips and pet bottles, yarn piece goods, knitted and woven goods, semi-processed and finished goods, natural, synthetic yarns, polyester textured yarns, cotton, synthetic or blended fabrics, towels and bed sheets, woven and knitted garments, PET bottles and PET slims, and trading of telecommunication products. During 14 April 1967, company has successfully listed on TSEC.
* Yu-Ziang Hsu founded Far Eastern Knitting Factory Co., Ltd. in Shanghai to produce ‘Skyscraper’-brand underwear for sale throughout the world.
* Far Eastern moved to Taiwan and installed its knitting factory in the Taipei suburb of Panchiao, where it continued producing and marketing knitted products.
* The name of the company was changed to Far Eastern Knitting Co., Ltd.;at the same time, the Taiwan Far Eastern Textile Co., Ltd. was set up in Panchiao for the purpose of establishing a weaving mill.
* Far Eastern Knitting and Taiwan Far Eastern Textile were merged to form Far Eastern Textile Ltd., which was located on Yungsui Rd. in Taipei.
* Shirt production equipment was added and the Republic of China’s first export order for cotton yarn was received.
* An advanced apparel plant was established.
* Cotton and chemical fiber facilities were installed in response to the needs of society and the synthetic fiber industry.
* The second textile plant was established to supply yarn for FETL’s own needs.
* The third synthetic fiber textile plant was established, completing the vertical integration of FETL’s processes from spinning to weaving,dyeing and finishing, and apparel production.
* The headquarters was moved to Paoching Rd. in Taipei in July.
* Permission for stock market listing was received in April
* A new garment factory was constructed at Hsinpu.
* A new spinning plant was built at Hsinpu to produce polyethylene and acrylic fiber.
* The Panchiao textile factory of Taiwan Textile and the Neili textile plant of Yunghsing Industries were procured and added as FETL’s Panchiao and Neili textile plants.
* The Yilan apparel plant was built.
* The Chungchou textile plant at Kuanyin in Taoyuan County was purchased and renamed the Kuanyin Textile Factory.
* Permission was received to acquire and merge Orient Chemical Fiber and establish a chemical fiber plant.
* A textile plant belonging to the former Jung Lung Textile was acquired and renamed the Taishan Textile Plant.
* Permission was received to merge Orient Chemical Fiber into FETL and establish the Eastman Division, which in July the following year was merged into the Textile Division.
* The Hukou textile factory was developed, and yarn and fabric plants were constructed there.
* Ground-breaking for the Taipei Metro Complex took place in August;these mixed-use towers, with 41 stories above ground and five below,contain offices, a shopping center, and a tourist hotel.
* A joint investment of NT$1 billion was carried out with Card Freudenberg of Germany and Vilene of Japan in the establishment of Freudenberg Far Eastern Spunweb Co. to engage in the production of non-woven industrial fabrics and related high-tech polyester fiber products.
* Production technology was acquired from L’Air Liquide International of France and a joint investment of NT$230 million was made in the establishment of Liquid Air Far East Ltd. to produce nitrogen and other industrial gases.
* To boost FETL’s share of the Southeast Asian market for PET bottles,joint investments were carried out in October with Hong Kong and Thai companies for the establishment of P.E.T. Packaging (HK) Ltd. and P.E.T. (Thailand) Co., respectively.
* To strengthen the development of uses for polyester long-fiber cloth, a joint investment of NT$1 billion was made together with Hong Ho Precision Textile Co. in the establishment of Everest Textile Co. to produce fine woven fabrics as a means of heightening the added value of FETL products.
* A joint investment of NT$360 million was made together with Canada’s London Life Insurance Co., Global Investment Holding Co., Chiao Tung Bank, and Central Investment Holding Co. in the establishment of China Investment Development Co. to engage in high-tech, real estate,and natural resources investment.
* In line with the government’s environmental protection policy, an investment was made jointly with the Shin Kong Group to establish the Taiwan Resources Recycling Co. to engage in the recycling and handling of wastes.
* Convertible bonds were issued in the amount of NT$1.5 billion and carrying an interest rate of 4.25%. These were the first convertible bonds to be issued in Taiwan.
* Permission was received to carry out the first issuance of overseas corporate bonds in the amount of US$50 million. The bonds were fully subscribed in October that year.
* The Hsinpu Synthetic Fiber Plant of the Fiber Division passed evaluation by the DNVI company to become the first chemical fiber plant in Taiwan to win ISO-9001 certification.
* Completion of the various elements of the Taipei Metro Complex began in October and the headquarters of FETL as well as of Asia Cement and other related enterprises moved into the complex on Oct. 16 and 17,making this the locus of the Far Eastern Group.
* The Yilan and Panchiao plants of the Apparel Division, and the Neili and Hukou plants of the Textile Division, won ISO-9002 certification.
* DuPont-Far Eastern Co. Ltd. was established in cooperation with DuPont of the United States, with a projected investment of US$100 million in the production of high-tech nylon 66.
* A contract was signed with ICI for the establishment of ICI Far Eastern Ltd. to construct a PTA plant at Kuanyin in Taoyuan County.
* Permission was received in July from the Investment Commission,Ministry of Economic Affairs for a joint investment of US$30 million by FETL and its wholly-owned subsidiary Yuan Ding Investment Corp. in the establishment of a holding company in a third area to establish Far Eastern Industries (Shanghai) Ltd. for the production and sale of polyester yarn, polyester filament, and other chemical fiber products.
* The first domestic convertible corporate bonds were issued in July, in the amount of NT$1.5 billion and with a face interest rate of 0%. The holders of these bonds can choose to exchange them for shares in two Far Eastern Group companies, Far Eastern Department Stores or U-Ming Marine Transport Corp.
* In January Far EasTone Telecommunications Ltd., which is 62.4% owned by FETL subsidiary Yuan Ding Investment Corp., obtained island-wide DCS and northern-region GSM mobile phone licenses from the Directorate General of Telecommunications. This new high-tech enterprise is a powerful stimulative force in FETL’s transition into the new century, and it provides a new model for growth as well.
* In July FETL carried out its first capital increase via cash injection since 1974 by issuing 120 million ordinary shares at a premium of NT$35, thus accumulating a total of NT$4.2 billion. This made a great contribution to improving the company’s capital structure and strengthening its operating system, boosting its paid-in capital by a large amount and making it one of the handful of companies in Taiwan with a capitalization above NT$20 billion
* The FETL-invested Far Eastern Apparel (Suzhou) Co. Ltd. began mass production in August, penetrating mainland Chinese markets primarily with Paul Simon-brand underwear.
* The FETL-invested Far Eastern Textile Industrial (Shanghai) Co. Ltd.began trial production in September. Since this was the last chemical fiber company to be issued a license by the mainland Chinese authorities,after the plant begins mass production it is expected to become a major source of reinvestment profit for FETL.
* Production by the ring-spindle machines at Hukou Plant No. 8 began in November, easily absorbing the post-expansion demand for cotton yarn materials by domestic yarn-dyed fabric plants.
* FETL issued new common shares in October. Along with shares held by Asia Cement and Far Eastern Department Stores, the total number of shares is 14,400,000 and issued for NT$44.5/share as GDR. This issuance not only raised the capital but also directed FETL to the international capital market.
* In January, FETL issued its second convertible bond of US$15 million. It is the first 5 – year zero coupon, zero put structure in the world that saved countless costs for company.
* Far Eastern Polychem Industries Limited (FEPI), the parent company of Far Eastern Industries (Shanghai) Ltd., was successfully listed on the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong on January 31. The money raised was used for the expansion of Far Eastern Industries (Shanghai) Ltd. for strengthening its competitiveness.
* FETL-invested New Century InfoComm Tech Co., Ltd. (NCIC) was awarded one of the three fixed line info-comm licenses in March. This became another big step for FETL in telecommunications business.
* In response to the newly modified Securities and Exchange Acts, FETL bought back in August the shares as Treasury Stocks, which could be used for delivery of converting ECB holders’ holding into common shares.
* Mr. Y. Z. Hsu, Far Eastern Group founder, passed away at the age of 90 in December and left behind the most valuable and cherished founding spirit of ‘Sincerity, Diligence, Thrift, and Diligence’ as the guiding principles.
* In March, FETL-invested New Century InfoComm Tech Co., Ltd. (NCIC) launched its variable voice and data services with ‘ sparq’ as the brand name. Best quality services of NCIC helps customers surf in an era of keen competition and rapid changes.
* In May, FETL bought back 38,751,000 shares of Treasury Stocks for the second time. The use of shares bought back is approved to issue bonus shares to employees in August.
* Far Eastern Industries (Shanghai) Ltd. completed its expansion construction in September.
* In September, FETL bought back another 12,871,000 shares of Treasury Stocks for the third time for issuing bonus shares to employees.
* Far EasTone Telecommunications Ltd. (FET), consortium headed by the Far Eastern Group and AT&T plus other members, successfully became a public listed company in Taiwan Stock Exchange in December. FET is the 2nd public listed company of mobile phone services in Taiwan.
* In May, FETL started the installation of SAP R/3 as the ERP system with PricewaterhorseCoopers. This project will be completed and put on line in early 2003 to help promoting internal processing re-engineering, cost reduction and management of financial information.
* In, June, permission was received from the Investment Commission, Ministry of Economic Affairs for an investment by FETL’s wholly-owned subsidiary Yuan Ding Investment Corp. to establish Far Eastern Industries (Wuxi) Ltd.
* In September, Far Eastern Resources Development Company (‘FERD’) which is 100% owned by FETL was established to transfer the book value of existing property development related businesses to FERD in order to elaborate the related specialty and actively developing the existing land resources.
* In September, FETL is awarded by Taiwan CommonWealth Magazine as the number one ‘The benchmark Enterprise with best reputation’ in 2003 survey of benchmark enterprises.
* In April, FETL invested company ‘Far Eastern Electronic Toll Collection Co. Ltd.’ has signed BOT contract with National Freeway Bureau.
* In October, FETL is awarded by Taiwan CommonWealth Magazine as the number one ‘The benchmark Enterprise with best reputation’ in 2004 survey of benchmark enterprises.
* In February, a development project ‘Panchiao Telecom Park Project’ conducted by FETL fully owned subsidiary Far Eastern Resources Development Company is passed by Ministry of Economic Affairs of the central government as ‘national major investment and major public constructions ‘
* In April, Far Eastone Telecommunications Ltd which is invested by FETL is passed by Taiwan Stock Exchange Corporation to become as a public listed company.
* In October, FETL is awarded by Taiwan CommonWealth Magazine as the number one ‘The benchmark Enterprise with best reputation’ in 2005 survey of benchmark enterprises.
* In February, The public highway electronic toll collection system is officially activated, this system is built by FETL invested company ‘Far Eastern Electronic Toll Collection Co. Ltd.’.
* In April, Oriental Petrochemical (Shanghai) Corporation which is invested by FETL is announced to production, with PTA annual production capacity of 600 thousand tons to support the synthetic fiber business under Far Eastern group and other producers.
* In January, Far Eastern Resources Development Co. which is fully owned by FETL proposed a change to the government on the urban development plan from production factory into a telecommunication-related specialized zone combined with a medical service center. The government has already approved such proposal after a three-year evaluation. This land re-zoning plan was officially announced on 23 January 2007.
* In June, Far Eastern (China) Investment Holding Ltd which is invested by FETL obtained operating license
* In July, the long term and short term credit rating of FETL has been rated as ‘twA+’ and ‘twA-’ respectively by Taiwan Rating’s Corp for the first time.
* In March, Sino Belgium Beer (Suzhou) Ltd was established and invested by FETL. The factory was completed in April. In October, a beer ‘Martens 1758′ , manufactured for Belgium Martens beer company, was marketed in Shanghai area.
* In October, FETL has obtained all shares of ‘Invista Far Eastern Petrochemicals Ltd.’& ‘Far Eastern Investa Ltd’ and renamed them to ‘ Oriental Petrochemical (Taiwan) Co. Ltd.’ & ‘ Far Eastern Fibertech Co., Ltd’ respectively.
* In April, FETL built a pavilion named “Far Eastern EcoARK” for the International Flora Expo held by the Taipei City Government. Such pavilion built by recycled PET bricks helped promote the awaress of conserving the environment.
* In October, in the Company’s Extraordinary Shareholders’ Meeting held on 13 October 2009, shareholders presented had resolved and approved to rename the company, from Far Eastern Textile Limited (FETL) to Far Eastern New Century Corporation (FENC), effective on the same date.
* In January, new shares of FENC were listed in Taiwan Stock Exchange.
Established from a merger between Far Eastern Knitting and Taiwan Far Eastern Textile
Manufactures and sells textiles and textile products
DELOITTE & TOUCHE , TAIWAN
US SIC Code
Taipei Metro Tower, 36th Floor
207, Tun Hwa South Road, Section 2
City province or state postal code
Phone: +886 2 2733 8000
Fax: +886 2 2736 7184
Country address: TAIWAN
Website url: www.fenc.com.tw