Taipei--Two major subsidiaries of petrochemical conglomerate Formosa Plastics Group (FPG, ????) are expected to finalize a joint investment plan in the United States in the first half of this year, according to the two companies.
Formosa Petrochemical Corp. (???) said it and Formosa Chemicals & Fibre Corp. (??) are planning to jointly invest US$9.4 billion in Louisiana to produce ethylene and propylene, and details of the plan are expected to be completed by the end of June.
In the project's initial phase, the two companies hope to produce 1.2 million metric tons of ethylene, 600,000 metric tons of propylene, 800,000 metric tons of ethylene glycol and 600,000 metric tons of polypropylene a year along with other products, the company said.
In the second stage, Formosa Petrochemical said, capacity will be added to produce an additional 1.2 million metric tons of ethylene and 800,000 tons of ethylene glycol a year.
The announcement came after FPG President Wang Wen-yuan (???) said in an interview published by the Commercial Times on Monday that FPG is considering the feasibility of a broader investment plan to include the Louisiana plan and a possible investment in neighboring Texas.
In the interview, Wang said he visited Texas from Feb. 3 to 8 at the invitation of Texas Governor Greg Abbott, who touted the state's investment environment in several locations and hoped the conglomerate would invest more in the state.
The governor said Texas has abundant shale oil, natural gas, water and power resources, which are major advantages for a petrochemical giant like the Formosa Plastics Group.
Currently, FPG's Formosa Plastics Corp. (??) and Nan Ya Plastics Corp. (??) operate two ethylene plants in Texas, and a third one is currently under construction.
The group invested US$6 billion in the state from 1980 to 2011, the report said.
Formosa Petrochemical said that after finalizing the Louisiana plan, the company will start an environmental impact assessment of the project, and it vowed to conduct the evaluation carefully to ensure smooth implementation of the project in the future.
Source: Focus Taiwan News Channel