The Board of Investments has granted fiscal incentives to JG Summit Olefins Corp’s US$600 mln naphtha cracker project in Batangas, on grounds that this is a large import substitute undertaking. JG Summit Olefins Corp., a unit of JG Summit Holdings, applied for a pioneer status as a new producer of polymer-grade ethylene and propylene, pyrolysis gas and by-products such as fuel gas, fuel oil and acid gas at an annual capacity of 925,537 metric tons. Groundbreaking is scheduled in January.
This is the Gokongwei group’s third attempt to pursue the project after previous tries in 2005 and 2008. The project has been delayed because of economic slowdown in 2008 and in 2005, the group registered a similar project under JG Summit Petrochemical Corp. with an estimated cost of P25.6 billion. JG Summit formed another subsidiary, JG Summit Olefins Corp., which secured the approval of the BoI in May 2008 at a cost of P34.38 billion, or P8 billion more expensive than the original plan.
03-Jan-11 
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