US Formosa Plastics says no decision made on olefins expansion

21 April 2011 21:21  [Source: ICIS news]

HOUSTON (ICIS)--Formosa Plastics on Thursday remained noncommital on news reports of plans for an olefins project at its Point Comfort site in Texas, saying it continued to evaluate its options.

“For the record, we continue to evaluate our options and are still in the consideration and planning stage, seeking opportunities to ensure raw material availability and increase operational flexibility,” Formosa said. “No definitive plans have been finalised or decisions made.”

Formosa said it was responding to “recent and recurring appearance of news statements and articles speculating about our capital investment plans for the construction and/or expansion of olefins production” at Point Comfort.

Taiwan’s China Economic News reported on Thursday that Formosa planned to invest $2.1bn (€1.4bn) to expand its naphtha-cracking plants and downstream petrochemical facilities in the US.

The news service said that after completion of the project, Formosa would be able to increase ethylene and propylene production by 450,000 tonnes/year and 400,000 tonnes/year, respectively.

Formosa said: “When we do have a definitive statement for release to the public, customers, and the news media, we will do so.”

Several producers have recently announced either plans or studies to expand olefins capacity in the US. On Thursday, Dow Chemical said it planned to build a world-scale ethylene plant on the US Gulf coast.

($1 = €0.69)

By: Brian Ford
+1 713 525 2653

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