Formosa mulls to indefinitely postpone fifth-stage expansion of Mailiao petrochemical complex

29-Apr-11

In view of the current unfavourable climate vis a vis petrochemical projects and the environment, Formosa Plastics Group (FPG) may indefinitely postpone the fifth-stage expansion of its petrochemical complex in Mailiao industrial zone, in southern Taiwan`s Yunlin County, according to the Chinese-language Economic Daily News (EDN). FPG may transplant the bulk of the fifth-stage expansion project abroad. Currently, the presentation of the fifth-stage expansion project may make it a target of political cross fire, due to the approaching presidential election. . Yunlin County government, for instance, strongly objected the fifth-stage expansion project, due to the frequent occurrence of public-safety incidents at FPG`s petrochemical complex. As a result, FPG seems more inclined to place priority on pushing the fourth-stage expansion project, environmental assessment statement of which has been approved. The fourth-stage project, however, still has to undergo assessment of difference for environmental impact, due to revision of its contents. To ensure the passage of the revised fourth-stage expansion project, FPG plans to abandon some items, such as oil refinery, involving higher pollution, and add new items for the production of higher value-added products, such as hydrogenated rubber.