Formosa pushes for China transport links

08 April 2008 06:17  [Source: ICIS news]

SINGAPORE (ICIS news)--Formosa Plastics Group, the Taiwanese petrochemical major, could invest in a cracker locally instead of in China if direct transportation links with the mainland were established, a company official said on Tuesday, confirming comments made by the group’s founder.

In a meeting with president-elect Ma Ying-jeou on Monday, Formosa founder Wang Yung Ching said: “Making it here (Mailiao) or there (Ningbo) is the same. With the direct links, it won’t be necessary to invest in Ningbo.”

Local media reports said Ma has decided to make Mailiao port one of the links with China. Over 60% of Formosa’s chemical output was exported to China, they added.

The Formosa official said the company could either transport raw materials to its plants in China or build the Ningbo cracker if the Chinese government gave the green light.

Formosa had sought approval from the Chinese government to build a $10bn (€6.4bn) refinery and cracker complex in Ningbo, Zhejiang province, although Taiwanese companies were not allowed to build these plants overseas under outgoing president Chen Shui-bian.

But its plan hit a roadblock after recent local media reports said Beijing requested that it drop the refinery and co-invest in the cracker complex with one of the Chinese majors.

($1=€0.64)

By: Florence Tan
+65 6780 4359

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