Polyester-manufacturer Far Eastern Polychem Industries is planning a HK$257 million spending spree to tap business opportunities arising from the mainland's World Trade Organisation entry.
Far Eastern Polychem, the mainland flagship of Taiwan-based Far Eastern Group, will spend HK$156 million on the construction of a non-textile polyester staple fabric plant, according to company spokesman Chang Lih-teh.
Another HK$78 million will be used to set up polyester sheet-production facilities.
Both plants are expected to begin production by the end of next year.
To help finance the expansion, Far Eastern Polychem hoped to raise about HK$300 million through an initial public offering this month on Hong Kong's Growth Enterprise Market, Mr Chang said.
The company will issue 61.5 million new shares on the GEM at HK$4 to HK$5 each, according to sources.