Formosa Chemicals, a producer of petrochemicals and textile fiber, will invest US$181.8 million to expand its production capacity of optical-grade polycarbonate (PC), a key material for optical discs.

The information comes from the company president Wen-yuan Wang during the company?s recent shareholders meeting.

FCFC is currently one of two Taiwan-based PC makers, along with Chimei-Asahi Corporation, and the company accounts for 41% of the local market, Wang indicated.

With the Taiwanese production of optical-grade PC falling significantly short of demand, FCFC has decided to expand the company?s production. The construction of a new factory with an annual capacity of 75,000 metric tons was approved by the company?s board, with volume production scheduled for 2007.