Kuokuang board approves relocation of petrochemical project to Central Taiwan

26-Jun-08

The board of directors of Kuokuang Petrochemical Co. Ltd. has resolved to relocate its mega petrochemical project from Yunlin offshore industrial zone. Due to the environmental cause which has stalled the project for five years, the project will now shift base to Tacheng Township of Changhua County, central Taiwan. The board of directors has also agreed to subject the project to the stricter requirement of the second-stage environment impact assessment directly. The new site is a state-owned plot, saving the company a lot trouble in procuring land from private owners, as in the case of the original site. The board of directors has requested the government to guarantee the inauguration of the project by 2015, failing which, the company threatens to cancel the project. The project at the new site is estimated to cost NT$600 bln, up from the original NT$400.5 bln, due to soaring material prices in recent years. The original project calls for building a petrochemical complex on a plot of 2,121 hectares, including a oil refinery with daily capacity of 300,000 barrels of oil, naphtha cracking facilities capable of producing 1.2 mln tpa of ethylene annually, aromatic plants with annual capacity of 1.55 metric tons, 23 mid-stream petrochemical plants, and a deep-water harbor. Kuokuang was established in early 2006, with state-run CPC Taiwan owning 43% stake and the remainder being held by Far Eastern Group, Chang Chung Group, China Man-Made Fiber Group, and Ho Tung Chemical, and Fubon Financial Holding.