Taipei, January 10 — Walsin Lihwa Corporation today announced its board resolution to establish a subsidiary, Walsin Nickel Industrial Indonesia, for cooperation with New Hono Investment Pte. Ltd. and Perlux Investment Pte. Ltd. to set up nickel pig iron and power plants in the Indonesia Morowali Industrial Park.
With its deep-rooted and long-time presence in the stainless steel market, Walsin Lihwa is aware of escalating market competition as well as increasingly lower price correlation between international nickel prices and stainless steel raw material prices Therefore, the company decided to invest US$50 million to establish Walsin Nickel Industrial Indonesia to engage in production and sales of nickel pig iron to stabilize its upstream material supply. Today the company also decided to provide a loan of US$250 million to Walsin Nickel Industrial Indonesia to strengthen the subsidiary’s working capital and cover its expenses during plant establishment.
Moreover, to help Walsin Nickel Industrial Indonesia engage in trade of nickel pig iron and stainless steel before it commences production, Walsin Lihwa decided to buy US$178.5 million bonds of Golden Harbour International Pte. Ltd. to work with the latter for nickel pig iron and stainless steel procurement to strengthen procurement and hedges.
Walsin Lihwa, a stainless steel industry leader for its ongoing improvement in management and enhancement of product added value, will pursue strategic alliances to further strengthen its competitiveness in the stainless steel industry.