Taiwan's Formosa Plastics Group is not in talks with China Petroleum Corp (Sinopec Group) on any joint investments in China.
Earlier in the week, Formosa was reported to be planning to collaborate with Sinopec Zhenhai Refining & Chemical Co. in a 50:50 investment. Formosa group is interested in investing in naphtha cracking operations in China to supplement its downstream petrochemical plants there, but prefers majority control. Taiwan's government also currently prohibits Taiwanese companies from investing in naphtha cracking operations in China. Since the Chinese market is the growing market, the group will have to shift, but will wait for an opportunity to further expand investment in China.