Formosa Taffeta Co said Monday that the firm's Zhongshan plant in Guangdong Province in mainland China would register a total revenue of T$1.5bn ($45m) in 2000, with pretax profit reaching T$120m ($3.6m).

Formosa Taffeta expects its Zhongshan plant will rank as one of most profitable textile plants by Taiwanese manufacturers with operations in mainland China in 2000. Far East Textile Ltd's Shanghai plant is also thriving, it has registered an average pretax profit of 20m renminbi ($2.4m) per month since early 2000.

Formosa Taffeta's Zhongshan plant is a subsidiary with 100 per cent reinvestment from its parent firm in Taiwan. According to existing regulations governing Taiwanese investment in the mainland, Formosa Taffeta is able to appropriate all the pretax profit from its investment in Zhongshan plant.

Formosa Taffeta will invest T$800m ($24m) for the establishment of an integrated production line for long fibre cloth and dyeing products in Zhongshan plant within 2000. The firm expects its Zhongshan plant will increase its revenue to T$1.8bn ($54m) in 2001, with the pretax profit reaching T$180m ($5.4m).

In 1992, Formosa set up its Zhongshan plant as part of efforts to meet the increasing demand from Taiwan's downstream manufacturers, who have already moved their production bases to Shenzhen in Guangdong and Xiamen in Fujian Province.

Formosa Taffeta also adjusted upward its overall revenue target to T$17.1bn ($517m) for 2000, with the pretax profit reaching T$2.5bn ($75m). In the first ten months, the firm's pretax profit came to T$2.18bn ($65m), up by 92.5 per cent from T$1.13bn ($34m) registered in the same period in 1999.