Taiwan's state-run CPC Corp is considering relocation of it’s 450,000 tpa No 5 naphtha cracker- one of its largest naphtha crackers, to Indonesia. Part of CPC’s plan is to operate it with a private firm. A study is being conducted to study the possibility of relocation. If the cracker is moved, it would be disassembled in Taiwan and rebuilt overseas.
The main reason behind the relocation is CPC’s struggle against a trend of weak petrochemical margins. Petrochem makers in Taiwan and South Korea have much larger capacity crackers –almost twice the size of CPC. CPC’s cracking capacity is comparatively smaller and less economical as a result.