Fuxin Special Steel and Bank of Taiwan-led Syndicated Loan of USD 186 Million and RMB 650 Million

(Taiwan Commercial Times News) Fujian Fuxin Special Steel Co., Ltd., to fund the expansion of its plant in Zhangzhou, Fujian, the purchase of machinery and equipment, and the repayment of bank loans, mandated Bank of Taiwan, United Overseas Bank Singapore, and Taiwan Cooperative Bank to arrange a syndicated credit facility of USD 186 million and RMB 650 million, and completed the syndicated loan signing procedures on June 4, 2014. The signing ceremony was co-hosted by Li Chih-tsun, Chairman of Formosa Plastics Corporation and Fujian Fuxin, and Li Chi-chu, Chairman of Bank of Taiwan.

Bank of Taiwan served as the managing bank for the syndicated loan. Participating banks totaled 12, including United Overseas Bank Singapore, Taiwan Cooperative Bank, Hua Nan Commercial Bank, Chang Hwa Commercial Bank, Land Bank of Taiwan, Bank of Taiwan Small and Medium Enterprise Bank, Citibank, Bank SinoPac, and DBS Bank. The syndicated loan was successfully arranged and was oversubscribed by 1.23 times the originally offered amount, demonstrating the financial industry's support for Fujian Fuxin and the Formosa Plastics Group.

Fujian Fuxin is located in the Longchi Industrial Park in Zhangzhou, Fujian, and its main products are stainless steel billets, black-skin steel coils, and white-skin steel coils, with an annual output of approximately 720,000 tons of stainless steel hot-rolled coils. Construction of the plant began in July 2011 and mainly introduced advanced technology and equipment from Germany's SMS-Siemag, Japan's Mitsubishi Hitachi (MH) and Toshiba Mitsubishi (TMEIC), and Austria's Andritz, and adopted advanced vacuum refining furnaces. In 2012, the three main plant buildings (the steelmaking plant, the hot rolling plant, and the annealing and pickling plant) were completed, and the related equipment successively entered the stages of installation, commissioning, and trial production. Among them, the steelmaking plant began hot trial runs in May 2013. As the plant successively enters full-capacity production, the future investment benefits should become apparent.