TAIWAN FIRM MAY STILL BUILD CHINA PETROCHEMICALS COMPLEX

TAIWAN FIRM MAY STILL BUILD CHINA PETROCHEMICALS COMPLEX

Taiwan's Formosa Plastics Group (FPG) is still evaluating its plan to build a petrochemicals complex, including an ethylene plant, in mainland China, a local newspaper has reported.

The Chinese-language Commercial Times on Monday quoted three senior officials of China's Fujian Province as saying that FPG had not canceled the plan and was in constant contact with them.Formosa Plastics, the country's largest private industrial group, has pursued the US$7 billion project on Haicang islet near Xiamen since 1989.

Taiwan's government called a halt to the project in 1990, fearing that it would cause an exodus of downstream plastics and petrochemicals companies to the mainland.

But in October, FPG's chairman, Y.C. Wang, told reporters here he would continue plans to build the plant if possible.

Formosa Plastics is proceeding with a plan to build a US$4.5 billion petrochemicals complex, including another naphtha cracker, in southern Taiwan. This project has been approved by the government and should start construction this year.