SARS concerns force Teco to suspend NT$1 B. mainland investment

Taipei, April 28, 2003 (CENS)--The Teco Electric & Machinery has decided to suspend its massive NT$1 billion investment plan in Nanchang of Jiangxi Province in southern China and it has not ruled out the possibility of moving the project to Subic Bay of the Philippines.

The flu-like disease severe acute respiratory syndrome (SARS) is the key factor for the major change of the plan. Teco had planned to start building a large industrial park to produce electrical appliances at an area of 200,000 ping (1 ping=36 square feet) in May. The are already over a dozen of satellite plants engaged in plastic, casting, molding, coating, and parts production and services in the area. Teco planned to team up with Mitsubishi and RHOSS for the development project.

The new Teco plants are scheduled to start manufacturing mainly washing machines, air conditioners, and LCD TV sets in late summer or early autumn. Total production would include between 200,000 and 300,000 air conditioners per year.

Ted Huang, chairman of the Teco Group, said the swift spreading of SARS decision prompted him to recall executives already assigned to Jiangxi for revamping of the plan. Due to the government's restrictions on personnel travels between Taiwan and mainland China the project is forced to be shelved for several months.

He said the group has planned the worst possible scenario. Corporate executives have come up an alternative plan to build the factories at Subic Bay of the Philippines. The bay area used to be a major air and navy base of the U.S. troops in Asia. The isolation of the area, which already has adequate power and water supply, will make it much easier to control the problems like SARS.


Huang, who is also chairman of the Chinese National Association of Industry and Commerce, called SARS a "disaster of Chinese." He expressed the hope that the compatriots on both sides of the Taiwan Strait will join hands to win the combat against the mysterious disease.