Taiwan welcomes homebound investment

2014-09-04

An increasing number of locally based firms with offshore operations are lifting their stakes in Taiwan as a result of the country’s improving business environment.

The most recent example is an agreement between New Taipei City Government and Hongwell Siyuan Co. Ltd. concluded Sept. 2 for the development of an innovation park in the northern Taiwan metropolis.

Hongwell is a joint venture among four subsidiaries under New Taipei-based Clevo Group, parent of leading computer and peripheral franchise Buynow in mainland China.

Signed by New Taipei Mayor Eric Chu and Clevo Chairman Hsu Kun-tai, the project allows the new venture to develop the park under a build-operate-transfer model for 50 years.

Set for completion in August 2019, the project will be Taiwan’s first cloud industry park planned and developed by the private sector, according to NTCG’s Economic Development Department.

Covering an area of 1.6 hectares, the NT$5.84 billion (US$194.76 million) investment features a 50-story office building capable of housing 200 businesses. Tentatively named i-Tower, the skyscraper is set to become the city’s new landmark.

The park will also include a 24-floor, 322-room luxury hotel managed by the Hyatt Hotels Corp., the department said, adding that the entire project will generate nearly NT$6 billion in revenues for the city and create 5,000 jobs for locals.

The latest project follows an NT$5 billion investment last year by Clevo’s Chicony Electronics Co. Ltd. for its new headquarters in New Taipei. Set for completion next May, the project will also add 5,000 new jobs to the local market.

In mid-August, Kaohsiung City-based Yieh United Steel Corp. secured a NT$12.07 billion syndicated loan for business expansion. In the same month, its parent company E United Group obtained funding for a major development project in the southern port city.

Tainan is also attracting additional investment. Earlier this year, local outfit Tong Yang Industry Co. Ltd. announced it will set up a global R&D center for automobile components and parts in the southern metropolis. The company will spend NT$3 billion on growing its local production capacity.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=221289&CtNode=413)