18 companies to ink LOI to invest in Taichung, Kaohsiung, Keelung, Hualien Harbor

17-Nov-12

Eighteen companies, including China Petrochemical Development Corp. and Kuokuang Petrochemical, will sign a letter of intent for investments with Taiwan International Ports Corp. for investing in the four major ports of Taichung, Kaohsiung, Keelung, and Hualien. Total investment outlay is expected to reach NT$55.4 bln, as per CENS. Of the amount, the petrochemical industry will invest over NT$45 biln, mainly for the production of high value-added products. Among the 18 companies, China Petrochemical Development Corp. will be the largest investor, ready to spend NT$35.6 billion for constructing chemical fiber and engineering plastics factories on 48 hectares of leased land in the special petrochemical zone in Taichung Harbor. In addition, it plans to build two docks for liquefied chemicals in the harbor. The company is scheduled to complete the procedure for land lease next year and start construction work in 2014. A ranking official of Taiwan International Ports Corp. pointed out that in addition to petrochemical, investment items of the aforementioned firms also include logistics, shipping, energy, and foodstuff. Furnished with a large industrial zone, Taichung Harbor will attract the largest amount of investment items, for which it will provide 100 hectares of land. Kuokuang Petrochemical plans to invest NT$10 billion for building an MMA factory in Taichung Harbor. The project represents the switch of the company’s investment strategy to high value-added downstream petrochemical products, following setback in investing in upstream naphtha cracking facilities in Taiwan and Malaysia. The Malaysian investment project of the company has stalled, due to difficulty in acquiring land. Kuokuang Petrochemical plans to lease 12 hectares of land in Taichung Harbor and join forces with a number of petrochemical firms, including Far Eastern Group, Chang Chun Group, China Man-Made Fiber, and Ho Tung Chemical, to develop high value-added petrochemical materials. It is now negotiating with international large firms for technological transfer. Toyo Engineering Corp. said Nov. 16 its subsidiary has been awarded a contract to build an ethylene oxide and ethylene glycol plant in the Ulsan petrochemical complex in South Korea. Toyo Engineering Korea Ltd. will provide engineering, procurement and construction management to Korea Petrochemical Industry Co. The plant is scheduled to be completed in May 2014.