The Taiwanese Government has no plan to lift the ban on investments by local petrochemical companies in China's naphtha cracking sector.
Hwang Jung-chiou, Vice Minister of Economic Affairs, has stated that the Ministry of Economic Affairs (MOEA) does not intent to lift the ban on investments in naphtha cracking in China.
A consortium of four domestic petrochemical companies - Ho Tung Chemical Corp, China Petrochemical Development Corp, USI Corp and LCY Chemical Corp – have signed a joint venture for setting up naphtha cracking plants in Gulei Development Zone in Zhangzhou, located in Fujian Province on the coast of Southeastern China.
The plants are to be set up in collaboration with the Fujian provincial government and the Beijing-based Sinopec Group.
While domestic companies are allowed to invest in China's oil refining industry, Taiwan still bars them from investing in the mainland's naphtha cracking sector.
In the present situation, the local companies who have entered into joint venture agreement with the Chinese would have to wait until the ban is lifted, to formally launch their project.
Fibre2fashion News Desk - India
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