Chinese Petroleum Corp (
State-owned Chinese Petroleum will take a 49 percent stake in the new company, while 10 Taiwan petrochemical companies and two financial services companies have pledged to take the rest, Chinese Petroleum spokesman Liao Tsang-long (
The project, including a 300,000 barrels-a-day crude oil refinery, will replace a facility in Kaohsiung which the nation's largest oil refiner promised to shut by 2015 because of opposition from residents due to pollution.
The new plants would use more efficient technology and help Chinese Petroleum to compete with rival Formosa Plastics Group (
"The plan is very important for Chinese Petroleum as the company tries to stay competitive," Liao said.
He refused to name partners in the joint venture.
Fubon Financial Holding Co (
The state-run company is expanding capacity also because of increasing demand for fuels and petrochemicals. Chinese Petroleum and its competitor Formosa Petrochemical Corp (
The project in Yunlin County on Taiwan's west coast will include an oil refinery, a plant that turns naphtha into ethylene and 27 units that produce other chemicals for plastics and textiles, company officials said in September. It will have capacity to make 1.2 million tonnes of ethylene a year.
Formosa Plastics last month signed a contract for a NT$89 billion loan to help fund expansion of its petrochemical factories in Mailiao, an area in western Taiwan. Investment in the venture will total NT$652.8 billion.