Master Kong doesn’t rule out Taiwan HQ

The company is planning to spend US$100 million (NT$3 billion) to build the headquarters, said Wei Ying-chou, chairman of the firm.

The Taiwan head office will complement Master Kong’s Shanghai headquarters, which is still being planned. Once completed — by 2010 at the earliest — Master Kong will relocate to that office from its current China headquarters in Tianjin.

The building of the Shanghai office represented Master Kong’s effort to expand to the real estate business, in addition to the group’s consumer product and logistics units.

Wei pointed out the company will invest in China’s real estate from a long-term perspective, taking advantage of the country’s booming property market. As such, the company will only rent out its China property rather than selling it, he said.

As for Taiwan, where Master Kong had its humble beginning, Wei said it is a long dream of his to have a corporate headquarters in Taiwan, in part because the current head office of Wei Chuan Corp., a subsidiary of Master Kong, has a history of 30 years and “is too old.”

Based on a careful assessment of the Taiwan market, an investment in the commercial office property could generate a return of about four to five percent, Wei said.

He pointed out over the next one to two years, the global financial market will be full of uncertainties. “Having plenty of cash on hand is the best policy,” he said.

Master Kong suffered a huge setback some 10 years ago after the company decided to expand itself. The company has since learned its lesson and sought to take a more conservative approach. The policy has worked, as the company has made huge growth over the past several years, without incurring any debts.

Speaking of the mainland Chinese market, Wei said the country has had significant growth over the past three years. However, now, it will be less likely China will see two-digit growth, given high energy prices, inflation, and the mortgage crises of the United States.

In his view, China’s food market will continue to grow, although at a slower pace.

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