Taiwan's FPG to Set Up Synthetic Rubber Plant in China

Taipei, Feb. 24, 2011 (CENS)--Formosa Plastics Group (FPG), Taiwan's largest plastics conglomerate, will invest US$300 million to set up a synthetic rubber plant in Ningbo, Zhejiang province, China.

Construction of the plant will begin sometime in October this year with mass production to start in two years. Initially the plant will be churn out 50,000 tons of IIR (isobutylene-isoprene rubber) per year to tap the tire market.

The group will invest in the rubber industry in both Taiwan and China through its subsidiary—Formosa Synthetic Rubber Corp. (FSRC). In addition to the Ningbo plant, the group has three other proposals related to production of tires in China, bringing its overall investments to US$500 million.

In Taiwan, the FSRC's investments in the rubber industry will be part of the group's expansion project in its sixth naphtha-cracking complex in Yunlin County, central Taiwan. The FSRC plans to set up three plants in Taiwan with total investments of NT$15 billion.

In addition, Nan Ya Plastics Corp. under the FPG will also set up three new plants with total investments of at least NT$20 billion to drive the group's involvement in the rubber industry.

FPG's entry into the rubber industry is triggered by domestic tire makers' demand.