Li Peng Enterprise Co, one of Taiwan's largest nylon producers and fabric makers, is planning a NT$1.5 billion expansion as it struggles to meet growing demand for its products.

Li Peng's president Jonathan Lin told Dow Jones Newswires in an interview that the company will spend NT$1 billion on expanding its yarn spinning capacity, and is mulling a further NT$300-500 million on expanding its nylon chip production facilities.

The planned NT$1 billion investment in yarn spinning facilities will expand the company's spinning capacity by 50 per cent, with construction to take place between July 2002 and end-2003, Lin said.

Li Peng will build its new facilities in Taiwan where it already has ten plants.