Solartech to invest $300m in new plant

Cable and wire product-maker Solartech International Holdings will invest $300 million in a bare copper rod production plant in Dongguan to expand its product range.

Chairman Chau Lai-him said the plant should make a profit once it began production in August 1998.

'Though the profit margin on bare copper rod production is not attractive, the volume produced could compensate for the low margin,' he said.

Annual production of the plant, in which the company has a 51 per cent interest, would be about 50,000 tonnes.

'The copper plant will post $800 million to $1 billion sales for the year to March 1999,' he said.

Solartech, which made its debut last December, will pay $150 million for fixed assets for the first phase of investment.