Formosa Petrochemical to raise output, seek new markets

11-Jun-13

Taiwan's largest private refiner, Formosa Petrochemical Corp. expects to produce more intermediate petrochemicals used in making rubber and other insulative materials on an expected gradual recovery in global demand and will seek new markets overseas amid rising domestic supply, as per Dow Jones Business News. Formosa Petrochemical expects to produce 2.8 mln metric tons of ethylene this year, up 8.7% from 2.6 mln tons in 2012, although global ethylene prices are unlikely to rise this year due to increasing supply from China and the Middle East.The refiner also plans to produce 2.2 mln tons of propylene this year, up 7.6% from 2.0 mln tons last year, it said. The company said it may look for new overseas markets for propylene, as CPC Corp., a government-run refiner in Taiwan, is expanding propylene production domestically. Chairman Chen Bao-lang said at the meeting that global petrochemical demand will likely recover gradually on the back of the U.S., Japan and China, whose economies are set to grow, albeit moderately, on policy driven stimulus measures. Mr. Chen also said Formosa's 50-50 joint venture with Kraton Performance Polymers Inc. ( KRA ) is set to start operation in 2015. The facility, to be built in Mailiao in central Taiwan, will have an annual output of 30,000 tons of hydrogenated styrenic block coplymer, an intermediate petrochemical used in making adhesives and rubber coatings.