Taiwan's current investment restrictions for naphtha cracking industry to be reviewed later

29-Dec-06

Taiwan's Ministry of Economic Affairs will not review current investment restrictions on similar facilities in China as the country's local naphtha cracking industry still has room for development. The focus of Taiwan's local petrochemical industry is expected to be upgradation of the Chinese Petroleum Corporation's third naphtha cracker to consolidate southern Taiwan's international competitive edge in the industry, followed by the renovation of the island's fifth naphtha cracker. The Ministry wants the industry to currently focus on eliminating contamination during the production process, improving workplace safety and developing products with higher add-value rather than relocating operations to China. Taiwan's petrochemical industry, led by USI Corporation, is aggressively exploring the possibility of setting up a naphtha cracker in Sichuan Province, western China, and that the Petrochemical Industry Association of Taiwan is approaching Sichuan authorities for possible negotiations on the bid.