Formosa to invest $10bn in Ningbo refinery, C2

09 March 2007 04:21  [Source: ICIS news]

SINGAPORE (ICIS news)--Formosa Group planned to invest $10bn in a refinery and cracker (C2) project in Ningbo, Zhejiang province, to provide feedstocks for its downstream units, a local government official said on Friday.

The project will include a 10m tonne/year refinery and a more than 1m tonne/year cracker, he added. The Taiwanese major will also build units to produce aromatics and butadiene (BD).

Formosa has submitted the project’s environment impact study to the central government for approval, he said.

A Formosa Petrochemical spokesman said the project was part of the group’s future plans, but he could not comment further.

“The group has a team working on the project, but I’m not aware of its progress or the details,” he added.

The company denied in 2005 that it was buying land in Ningbo for its cracker project.

Under current regulations, Taiwanese companies are not allowed to build refineries and crackers overseas.

The Formosa group of companies is already producing polyvinyl chloride (PVC), acrylonitrile butadiene styrene (ABS), purified terephthalic acid (PTA), acrylic acid and esters in Ningbo.

It is also building polypropylene (PP) and epichlorohydrin (ECH) units.

By: Florence Tan
+65 6780 4359

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