Demand for petrochemicals usually moves in tandem with the gross domestic product. Formosa Plastic Group hopes to ride on the wave of strong economic growth in the US which will prompt higher demand for petrochemicals. Formosa plans to invest US$1.1 billion in Texas in the next five years form a total outlay of US$1.5 billion to tap rising demand for chemicals and energy. US$1.1 billion will be spent in Texas in the next five years to expand chemical production and build a power plant and US$400 million will be spent in Taiwan to raise chemical output.
Formosa plans to build a site in Texas that can produce 180,000 tpa of polyvinyl chloride (PVC) and a 300-megawatt power plant that will burn petroleum coke, a cheaper alternative to natural gas, as well as expand ethylene output capacity at Point Comfort, Texas. This plant currently account for 4.4% of North American ethylene capacity. In Taiwan, Formosa Plastics has sought government approval to invest US$300 mln-400 mln within four years on acrylic ester and super-absorbent polymer plants.
16-Jan-06 
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