CPDC puts brakes on expansion

23 November 1998 00:00  [Source: ACN]

China Petrochemical Development Corp (CPDC) is reining in its expansion ambitions because of fears the Taiwanese economy could go into decline.

Earlier this year the caprolactam, acrylonitrile, methanol and acetic acid player was scouting for assets in addition to submitting a bid for Hanwha Energy. CPDC withdrew its offer for Hanwha Energy when it emerged that the troubled South Korean refinery had liabilities totalling more than US$2bn.

'It would be very unwise to increase our debt burden through acquisitions during a period of unprecedented uncertainty,' said a company source. He disclosed that an existing CPDC investment - a small shareholding in construction company BS Engineering - has already impacted the company's performance. In the first three quarters of this year CPDC suffered an NT$504m (US$15.5m) loss (see p9).

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