FPCC: The petrochemical industry may face difficulties this year
Formosa Petrochemical Corporation (FPCC) (6505-TW) held a shareholders' meeting today on May 31st. The company told that the Environmental Impact Assessment (EIA) of the investment in the U.S. state of Louisiana is expected to pass in 3Q19 and the plant will be set and come into operation in 2023. The chairman Bao-lang, Chen said that since the US-China trade war is unsolved and large amount of ethylene capacity is added in the market, the supply/demand and price are affected so the petrochemical industry may face difficulties this year. The company will continue to dispatch resources, introduce AI technology, increase production value and reduce potential risks.
Chen told that FPCC has successfully carried out strategic joint ventures with well-known foreign companies and is committed to the downstream products development for naphtha cracking plant, targeting high values. The company has a joint venture with Japanese company Idemitsu Kosan for building a plant with 43,800 tons/yr capacity of HHCR, which is expected to become operational in 2H19.
On the other hands, Chen told that the pre-operations of the investments in the U.S. state of Louisiana have been started, and 13 of the 15 licenses have been obtained. The EIA is expected to pass in 3Q19 and the plants will be set and come into operation in 2023. In the future, the company will get the low-cost advantages of US shale gas and create better revenue/earnings.