Taiwan’s CPC and Formosa plan petchem, steel plants

TAIPEI: Taiwan's staterun Chinese Petroleum Corp (CPC) and the Formosa Plastics Group are both planning to build multi-billion dollar heavy industrial complexes on the same site in the central part of the island, executives said yesterday. 

CPC, the island's largest refiner, is hoping to spend T$370bil (US$11.6bil) on a 300,000 barrel-per-day refinery complex that includes a naphtha cracker with an annual capacity of 1.2 million tonnes of ethylene at a new development in the Yunlin technology industrial park, said executives. 

The refinery within the complex, to be completed by 2010, would eventually be expanded to 450,000 bpd, and is planned as a replacement for CPC's 270,000bpd Kaoshiung refinery, which the government plans to close by 2015, executives said. 

Formosa, which is a holding firm for companies including Formosa Plastics Corp. has also applied to invest T$130 bil (US$4.1bil) in a 7.5 million-tonne per year steel mill in the same industrial zone. 

CPC is hoping to sign up a group of Taiwan companies to jointly invest in the complex by the end of January, and form the joint venture firm in February, said the executive. 

So far 10 petrochemical firms have committed to the venture and two financial companies, said the executive, who declined to name the companies involved. 

CPC operates three refineries around the island with a combined capacity of 770,000 bpd. – Reuters  

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