Shinkong Synthetic Fibers Corp. posted a first-quarter net profit of NT$397 million (US$12.3 million), up more than 10% from a year earlier, as increased production capacity and growing demand for eco-friendly products bolstered the Taiwanese manufacturer’s performance.
Earnings per share reached NT$0.25 for the quarter, according to the company’s financial report released Sunday. Analysts expect stable operations to continue as customer orders remain steady and production lines operate at normal capacity.
The polyester producer has strategically expanded its bottle-grade polyester chip production facilities in Taiwan and Thailand in recent years, with its Thai plant now operational with an annual capacity of 210,000 tons. The company has also added 18,000 tons of recycled polyester capacity in Taiwan to meet rising client demand for sustainable products.
Market research indicates global demand for bottle-grade polyester is projected to grow 3-4% annually over the next five years. Recycled PET (R-PET) demand is expected to rise even faster as corporations pursue carbon reduction targets ahead of 2050 net-zero deadlines.
Green products currently account for 25-30% of Shinkong’s solid polyester chip revenue, a proportion the company expects to increase to 50% as sustainability initiatives gain momentum worldwide.
The manufacturer may also benefit from recent US tariff policies, as bottle-grade and recycled polyester chips were exempted from retaliatory tariffs targeting Taiwanese and Southeast Asian exports. This exemption could provide Shin Kong with a competitive advantage while reducing pressure on other textile products.
In a diversification move, Shinkong announced a NT$1.086 billion investment for a 43.3% stake in New Shin Capital, aiming to integrate resources across different strategic sectors and pursue broader investment opportunities.
