FPC to Budget NT$60.9 B. to Boost Output in the U.S.

Apr 21, 2011 Ι Industry In-Focus Ι General Items Ι By Ben Shen, CENS
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Taipei, April 21, 2011 (CENS)--Seeing the growth dynamics in the U.S. petrochemical market, Formosa Plastics Corp. (FPC), Taiwan's largest petrochemical firm, has recently resolved to invest US$2.1 billion, or about NT$60.9 billion, to expand its naphtha-cracking plants and downstream petrochemical facilities in the U.S.

An FPC executive noted the expansion of naphtha-cracking plants in the U.S. is based on the predicted increase in demand for petrochemical products in the wake of fast economic development leading to the prosperous development of automobile and electronics industries there.

After the expansion project is completed, the company will be able to increase annual output of ethylene and propylene by 450,000 metric tons and 400,000 metric tons to reach 2.07 million metric tons and 1.14 million metric tons, respectively. Thanks to the expansion, the company will see its production capacity in the U.S. lag behind only that of its naphtha-cracking complex in Mailiao of Yunlin County, central Taiwan.

The expansion project will focus on the production base in Point Comfort of Texas State of the U.S. The expansion project is expected to get approval from Texas state government sometime in 2012, and the whole project will be completed in late 2014 or early 2015.

In addition to the expansion of the naphtha-cracking plants in the U.S., the FPC will also increase production of EDC (ethylene dichloride), VCM (vinyl chloride monomer), PVC (polyvinyl chloride) and such polypropylene-related products as EVA (ethylenevinyl acetate).

Formosa Plastics Corp.'sExpansion Projects in the U.S.
ProductOld Capacities
(one million metric tons)
Expanded Capacities
(one million metric tons)
Terminal Applications
Ethylene162207Upper-most Plastic Raw Materials
Propylene74114Acrylic Plates
Vinyl Chloride152166Plastic Pipes and Leathers
Ethylene Dichloride96.8110.8Construction and Decoration Materials
Polyvinyl Chloride120138.2Plastic Pipes

Source: Formosa Plastics Corp.

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