Economics Ministry Mulls Easing Restrictions on Naphtha Cracking Investment in China

Taipei, March 9, 2011 (CENSS)--The Ministry of Economic Affairs (MOEA) has pledged to mull the policy of permitting local petrochemical firms to invest in naphtha cracking facilities in China in May, following the settlement of the environmental impact assessment for Kuokuang petrochemical project, according to the Chinese-language Economic Daily News (EDN), sister publication of Taiwan Economic News (TEN).

An official of the Executive Yuan (the Cabinet) pointed out that the passage of Kuokuang petrochemical project will pave the way for the government to lift the restriction for domestic firms to invest in naphtha cracking projects in China, since it meets the government's policy of giving precedence to investment in Taiwan. Even if the project fails to clear the environmental assessment evaluation of the Environmental Protection Administration (EPA), the Ministry of Economic Affairs (MOEA) will still start the process of reviewing the policy for investment in naphtha cracking facilities in China.

The official revealed the stance following the visit by Li Tse-chun, chairman of Formosa Plastic Corp., to Huang Chung-chiu, vice economics minister, to express his gratitude to the agreement of the economics ministry permitting the company to remit US$57.5 million for setting up EVA plant in Ningbo. Li pledged to fulfill the requirement of the economics ministry to upgrade the operation of FPC, as a condition for the permission.