Some U.S. Firms Adding to Investments in Asia

A number of U.S. companies, including Bowater Inc., Procter & Gamble Co. and Unocal Corp., are boosting their investments in Asia, betting that the world’s fastest-growing consumer market will bounce back from economic crisis.

Bowater, the largest U.S. newsprint maker, said Monday that it’s in talks to acquire a significant interest in a newsprint mill owned by Halla Pulp & Paper Co. Halla is a member of South Korea’s 12th-largest conglomerate, which was declared bankrupt by creditors last month.

“Long-term forecasts for consumption in Asia are very strong despite the near-term slowdown in growth,” said Deborah Humphrey, a spokeswoman for Greenville, S.C.-based Bowater. “We want to take advantage of the opportunity.”

The timing is good for Bowater because the company would be buying Halla Pulp & Paper with dollars that have increased in value by 81% against the South Korean won over the last three months. On Monday, the dollar was quoted at about 1,800 won, compared with 910 won in October.

Procter & Gamble, the world’s largest consumer products company, late last year acquired control of Ssangyong Paper Co. from the debt-ridden Ssangyong Group, making it the first foreign company to buy part of a major South Korean conglomerate.

Unocal, an El Segundo-based oil and natural gas company, said it will invest much of the $850 million it’s budgeted for 1998 overseas investment in Asia.

Enron Corp., a Houston-based company that invests in natural gas pipelines, liquefied natural gas projects and power plants, said it’s considering boosting investment in Asia--especially India, which it has targeted for extensive investment.