CPC kicks off investment project in Yunlin Petrochemical Industrial Park

Taipei, Jan. 18, 2005 (CENS)--The state-run Chinese Petroleum Corp. (CPC) has set up a preparatory office to launch an NT$370 billion (US$11.56 billion at US$1:NT$32) joint-venture investment project in Yunlin Petrochemical Industrial Park in Yunlin County, central Taiwan.

The new venture is named Taiwan Petrochemical Technology Corp. CPC said it would sign a joint-venture agreement with interested firms and complete raising first-stage investment fund of NT$1.4 billion (US$43.75 million) by the end of January.

CPC's vice president Taso Ming said his company would intensively convene meetings to discuss the investment project, with relevant details to be worked out soon. He said all the shareholders of the new joint venture should hand in subscribed funds after the joint-venture agreement is inked.

Taiwan Petrochemical Technology Corp. is expected to be officially established after the second-stage funds of NT$4.2 billion (US$131.25 million) are collected by the end of February. At that time, the company will have a paid-in capital of NT$5.6 billion (US$175 million).

There are now 11 companies interested in joining the CPC investment project, including China Man-made Fiber Corp. , Chin Mei Industrial Corp., China Development Industrial Bank, Chang Chun-Darlien Group, Far Eastern Group, Grand Pacific Petrochemical Co., Lee Chang Yung Chemical Industry Corp., Fubon Financial Holding Co., Ho Tung Chemical Corp., Taiwan Synthetic Rubber Corp., and Formosa Union Chemical Corp. The 11 firms have subscribed 118% stake of the new joint venture, far more than the 51% ratio formerly expected by the CPC.

Seeing the hectic response from outsiders, CPC Chairman Kuo Chin-tsai noted his company would retain the role to dominate the new firm while the positions of chairmanship and presidency of the new company can be assumed by partners.

Kuo said he might transfer some qualified CPC staff to the prospective Taiwan Petrochemical Technology to pave the way for the privatization of CPC.

He said the new joint venture has to sell its products, including gasoline and diesel oil, to his company for sale because the plant of the new company will replace the role of fifth naphtha cracking plant in Hochin of Kaoshiung City, southern Taiwan.