Three Formosa Plastics Group companies have announced plans to spend $110.3 billion (Twn.), or $3.6 billion (US), to build 15 petrochemical production units at FPG's petrochemical complex in Yunlin County, Taiwan.
Taiwan's Council for Economic Planning and Development (CEPD) approved the plan, which calls for Formosa Plastics Corp., Nan Ya Plastics Corp., and Formosa Chemical & Fibre Corp. to raise $41.1 billion (Twn.) through internal financing, while an additional $69.2 billion (Twn.) in loans will be made available by local banks.
The CEPD decided to include this major expansion of FPG's Yunlin petrochemical complex among private investment projects in Taiwan's 6-Year Economic Program. Loans made to projects included in the program are exempted from lending restrictions stipulated by Taiwan's Bank Law.
The CEPD also said that Chiao Tung Bank, the bank chosen to arrange the loan, should make every effort to include as many local and foreign banks as possible in the consortium of lenders.
Meanwhile, FPG announced it will invest $15 billion (Twn.) to develop a technology industrial park in northern Taiwan. The 319-hectare park will comprise specialized industrial zones for electronic components and materials, precision and electric machinery, vehicles and parts, semiconductors, electronic and information technology equipment, support industries, and warehousing.
FPG intends to base its new car manufacturing subsidiary, Formosa Automobile Corp., in the area designated for vehicles and parts and will use the warehousing zone to store oil products produced by another affiliate, Formosa Petrochemical Co.