Taiwan-based China Petrochemical Development Corp. (CPDC) plans to invest NT$30 bln (US$987 mln) to build a phenol plant in China's Jiangsu Province, as per CNA. The investment plan has been approved by the company’s board of directors and awaits approval from the authorities in Taiwan and China. The new plant is expected to begin operations two years after regulatory approval.
Phenol is a feedstock used in the production of caprolactam and CPDC is one of the world's top five producers of caprolactam. This investment is expected to facilitate a vertical integration of the company and ensure steady raw material supply. NT$11.5 bln out of the total NT$30 bln investment will be funded by the company, and it seeks financing in China or from other sources for the balance.