Identifier
Created
Classification
Origin
06TAIPEI1089
2006-03-30 08:22:00
UNCLASSIFIED
American Institute Taiwan, Taipei
Cable title:
Taiwan: Budget for Third Naphtha Cracker
how-toVZCZCXRO6669 RR RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB DE RUEHIN #1089 0890822 ZNR UUUUU ZZH R 300822Z MAR 06 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC 9420 INFO RUCPDOC/USDOC WASHDC RUEHBJ/AMEMBASSY BEIJING 4982 RUEHGZ/AMCONSUL GUANGZHOU 9163 RUESLE/AMCONSUL SHANGHAI 8552 RUEHSH/AMCONSUL SHENYANG 5094 RUEHCN/AMCONSUL CHENGDU 1145 RUEHHK/AMCONSUL HONG KONG 6177 RUEHZU/APEC COLLECTIVE
UNCLAS TAIPEI 001089
SIPDIS
DEPT PASS AIT/W
DEPT FOR EAP/RSP/TC
STATE ALSO PASS USTR
SIPDIS
FROM AIT KAOHSIUNG BRANCH OFFICE
E.O. 12958:N/A
TAGS: ECON EIND TW
SUBJECT: Taiwan: Budget for Third Naphtha Cracker
Expansion Project Axed
REF: Taipei 0551
UNCLAS TAIPEI 001089
SIPDIS
DEPT PASS AIT/W
DEPT FOR EAP/RSP/TC
STATE ALSO PASS USTR
SIPDIS
FROM AIT KAOHSIUNG BRANCH OFFICE
E.O. 12958:N/A
TAGS: ECON EIND TW
SUBJECT: Taiwan: Budget for Third Naphtha Cracker
Expansion Project Axed
REF: Taipei 0551
1. On March 22 the Legislative Yuan's (LY) Economic
Committee rejected the Third Naphtha Cracker expansion
project in Linyuan Township, Kaohsiung County, planned by
the state-owned Chinese Petroleum Corporation (CPC). The
Legislators on the Committee also refused to approve the
project's USD73 million budget. Hundreds of local
residents, who had protested at the LY, welcomed the
decision to stop the project from being built in their
hometown.
2. DPP Legislator Chen Chi-li (Kaoshiung County),who
initiated opposition against the expansion project,
complained that the petrochemical industries operating in
the Linyuan Petrochemical Zone, including CPC's facilities,
had long polluted the area's environment and presented a
serious threat to residents' health. Chen noted that local
residents were not opposed to CPC's investments in
upgrading the existing production technology. However,
they disapproved that the new facilities would be built on
a site so close to a residential area.
3. In response, Ho Li-jun, Planning Director of CPC's
Petrochemical Division, noted that CPC is willing to
downsize the expansion project and have the facilities
constructed within the existing zone. Ho went on to say
that Legislators supporting the project are planning to
negotiate with their LY colleagues to seek resumption the
project. Meanwhile, CPC also will arrange meetings to
pursue project approval by residents. Ho said that CPC
will not implement the project until the local community
approves it.
4. Ho noted CPC's cracker expansion project can
substantially improve the development of Taiwan's
petrochemical industry. The new cracker facilities will
ensure production material supply to local petrochemical
downstream industries. Additionally, when CPC successfully
expands the project, four additional petrochemical
downstreamers in southern Taiwan will also start their
expansion projects planned for the Linyuan and Jenta
Petrochemical Zones in Kaohsiung County. According to Ho,
the four prospective investors are Taiwan Styrene Monomer
Corporation (TSMC),Grand Pacific Petrochemical Corporation
(GPPC),Oriental Union Chemical Corporation (OUCC),and
China Man-Made Fiber Corporation (CMFC). TSMC and GPPC
each will invest USD325 million to produce styrene monomer
(SM),while OUCC and CMFC will invest USD550 million and
USD470 million respectively to produce Ethylene Glycol.
The four expansion projects are expected to generate
approximately USD1.5 billion in production value each year.
Thiele
Young
SIPDIS
DEPT PASS AIT/W
DEPT FOR EAP/RSP/TC
STATE ALSO PASS USTR
SIPDIS
FROM AIT KAOHSIUNG BRANCH OFFICE
E.O. 12958:N/A
TAGS: ECON EIND TW
SUBJECT: Taiwan: Budget for Third Naphtha Cracker
Expansion Project Axed
REF: Taipei 0551
1. On March 22 the Legislative Yuan's (LY) Economic
Committee rejected the Third Naphtha Cracker expansion
project in Linyuan Township, Kaohsiung County, planned by
the state-owned Chinese Petroleum Corporation (CPC). The
Legislators on the Committee also refused to approve the
project's USD73 million budget. Hundreds of local
residents, who had protested at the LY, welcomed the
decision to stop the project from being built in their
hometown.
2. DPP Legislator Chen Chi-li (Kaoshiung County),who
initiated opposition against the expansion project,
complained that the petrochemical industries operating in
the Linyuan Petrochemical Zone, including CPC's facilities,
had long polluted the area's environment and presented a
serious threat to residents' health. Chen noted that local
residents were not opposed to CPC's investments in
upgrading the existing production technology. However,
they disapproved that the new facilities would be built on
a site so close to a residential area.
3. In response, Ho Li-jun, Planning Director of CPC's
Petrochemical Division, noted that CPC is willing to
downsize the expansion project and have the facilities
constructed within the existing zone. Ho went on to say
that Legislators supporting the project are planning to
negotiate with their LY colleagues to seek resumption the
project. Meanwhile, CPC also will arrange meetings to
pursue project approval by residents. Ho said that CPC
will not implement the project until the local community
approves it.
4. Ho noted CPC's cracker expansion project can
substantially improve the development of Taiwan's
petrochemical industry. The new cracker facilities will
ensure production material supply to local petrochemical
downstream industries. Additionally, when CPC successfully
expands the project, four additional petrochemical
downstreamers in southern Taiwan will also start their
expansion projects planned for the Linyuan and Jenta
Petrochemical Zones in Kaohsiung County. According to Ho,
the four prospective investors are Taiwan Styrene Monomer
Corporation (TSMC),Grand Pacific Petrochemical Corporation
(GPPC),Oriental Union Chemical Corporation (OUCC),and
China Man-Made Fiber Corporation (CMFC). TSMC and GPPC
each will invest USD325 million to produce styrene monomer
(SM),while OUCC and CMFC will invest USD550 million and
USD470 million respectively to produce Ethylene Glycol.
The four expansion projects are expected to generate
approximately USD1.5 billion in production value each year.
Thiele
Young