CHINA: Formosa Plastics to invest USD 800 million in Ningbo
Formosa Plastics Corp., the flagship company of the Formosa Plastics Group (FPG) conglomerate in Taiwan, said Wednesday (20 Dec 2017) it plans to invest USD 800 million in Ningbo, Zhejiang Province, China, to produce petrochemical raw materials.
Formosa Plastics said its board of directors has approved the investment plan, in which the company will build a propane dehydrogenation (PDH) production base in Ningbo in a bid to use PDH as an ingredient in the production of propylene.
According to Formosa Plastics, its Ningbo subsidiary needs more than 800,000 t/y of propylene for production. Currently, about 300,000 t/y of propylene comes from the sixth naphtha cracking plant in Yunlin County, Taiwan, but the Ningbo unit depends on supply from Chinese firms to meet annual demand.
In an attempt to ensure stable propylene supply, it is necessary for the Ningbo subsidiary to produce PDH itself.
The company said the investment plan is pending regulatory approval but Formosa Plastics expects construction of the PHD plant to be started once it obtains the green light and to be completed by the end of 2021.
The PDH plant is expected to increase Formosa Plastics’ production of propylene to 600,000 t/y, the company said.
Formosa Plastics also said it will raise investment in its Ningbo subsidiary by USD 267 million, which is about one-third of the total USD 800 million investment, while it will seek bank loans to make up the remainder of the PDH investment plan.
Source: “Focus Taiwan News Channel”, Taipei; 20 Dec 2017
(Syed Rashid Ali, Karachi, Pakistan)