FPG waives Ningbo project of China
Source: Fibre2fashion News Desk - India Date: 2008-04-11
Formosa Plastic Group (FPG), subsidiary of Formosa Petrochemical Corporation (FPCC) stated on April 7 its decision to forgo the mega ethylene project in Ningbo of mainland China.
The company noted that with the opening up of direct cross-strait shipment, FPG will be able to transport its petrochemical products from Mailiao to China and therefore may not have to enforce its mega ethylene project in Ningbo of Zhejiang Province, China.
Sources confirmed Fibre2fashion, that the Chinese Government proposed Formosa Plastic Corporation, for a joint venture of only 50 percent. But the latter wanted a 100 percent holding in project in mainland China. Besides, there were a number of other issues as well.
The company was also facing challenging times dealing with leading indigenous Chinese petrochemical producers who were opposing the project.
This mega ethylene project in Beilun Petrochemical Zone of Ningbo City planned an annual crude oil refining capacity of 10 million metric tons and ethylene capacity of 1.2 million metric tons which is similar to the existing complex in Mailiao offshore industrial zone.
There are probabilities that now, the China National Petrochemical Corporation (CNPC) may take over this business project.
