Taiwan’s Formosa Plastics Corp is going to make the US$3.6 billion investment aimed at expanding production capacity in Taiwan, China and the USA over the next five years and recovering the global market after the COVID–19 pandemic.
The company intends to do the greatest one of $2.92 billion to ramp up annual production of polyvinyl chloride (PVC), vinyl chloride monomer (VCM) and caustic soda by 800,000 tons, 800,000 tons and 560,000 tons, respectively, in Texas.
In Taiwan, Formosa Plastics will spend NT$350 million (US$12.28 million) to help its subsidiary, Taiwan VCM Corp., expand its annual PVC capacity by 100,000 tons.
The company has reported that it plans to complete this project by the end of 2022.
Another NT$8.85 billion will go on construction of 12 storage tanks and one warehouse in Kaohsiung, which is scheduled to end by March 2022. A superabsorbent polymer (SAP) plant in Chiayi will boost output by 20,000 tons per year through a NT$200 million investment.
The company is optimistic about Beijing’s 14th five-year economic development plan for 2021—2025. Under it, domestic demand may drive economic growth.
Formosa will put US$40 million into its Ningbo plant, which is making ethylene vinyl acetate (EVA) now, to enlarge annual production by 28,000 tons by December 2022. The company has informed that it is also evaluating the feasibility of a US$360 million investment to expand annual PVC and VCM capacity by 150,000 tons and 600,000 tons, respectively, there.