FPG, CPC approved to launch massive investments in central Taiwan

Taipei, Jan. 27, 2005 (CENS)--The Executive Yuan (Cabinet) has approved two massive investment projects, together valued at NT$505.3 billion (US$15.82 billion at US$1:NT$31.8), launched by Formosa Plastics Group and the state-run Chinese Petroleum Corp. (CPC) at the Yunlin Offshore Industrial Zone in Yunlin County, central Taiwan.

With the Cabinet approval, FPG will funnel NT$137.3 billion (US$4.31 billion) to set up an integrated steel mill, occupying a land area of 521 hectares, in the Hsinshing district of the Yunlin Offshore Industrial Zone.

CPC will invest NT$368 billion (US$11.57 billion) to establish a petrochemical technology industrial park, occupying an area of 1,847 hectares, at the Taihsi district and neighboring land lots of the industrial zone. The company also plans to set up an industrial port somewhere in the industrial zone.

If completed, the two massive investment projects are expected to bolster domestic economy and create many job opportunities.

CPC's investment project, slated for completion in 2010, will help CPC create NT$300 billion (US$9.43 billion) in annual output, accounting for 0.91% to Taiwan's gross national product.

Construction of FPG's proposed integrated steel mill will be completed sometime in 2009, and will then be able to generate NT$108.8 billion (US$3.42 billion) in annual output, commanding 0.33% of the GNP.

Soon after the Cabinet approved the two massive investment projects, the outgoing Premier Yu Shyi-kun said CPC and FPG should submit carbon dioxide emission control plans to go in line with the norm of the Tokyo Protocol.