NewsFlashFormosa to further delay Ningbo PP start

19 July 2007 07:29  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s Formosa Polypropylene (Ningbo) is expected to postpone the startup of its 450,000 tonne/year polypropylene (PP) unit in China to November due to difficulties in obtaining a production licence, a source close to the company said on Thursday.

“It was earlier expected to start up in October but this seems difficult now and it is likely to be delayed to next year if it doesn’t start up in November,” the source said.

The startup, originally scheduled for end-2006, had been pushed back three times prior to this latest delay, and reasons cited earlier were delays in construction progress due to the Chinese New Year holidays in February.

Application for the production licence has been hindered by the complexity relating to its parent company Formosa Plastics Group’s plans to build an integrated oil refinery and petrochemicals complex in Ningbo, industry sources said.

Formosa Plastics Group’s discussions with the Chinese government over the ownership structure of the integrated complex were said to have reached a deadlock, the industry sources said, but this could not be confirmed.

The companies could not be reached for comment.

By: Chow Bee Lin
+65 6780 4359

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