Taipei, 19th August, 2011 - A group of Taiwan firms have signed a contract to set up a US$4.5bil refinery complex in China, defying a ban against such projects imposed by the island's government, said officials and media said.
The group, led by Ho Tung Chemical, inked the investment agreement with the government of southeast China's Fujian province and with Sinopec, China's biggest petrochemical group, in Beijing on Tuesday.
The agreement was signed after Taiwan's government, citing environmental considerations, rejected a similar, controversial US$20bil project for a giant refinery and petrochemical complex in western Taiwan.
“Since the project has hit a snag, the government must find a way out for local petrochemical companies, or the companies will gradually disappear,” Ho Tung founder Chen Wu-hsiung told the Taipei-based Economic Daily News.
Local companies are still barred from investing in China's refinery industry and some high-tech sectors despite eased tensions following the election of Beijing-friendly politician Ma Ying-jeou as Taiwan president in 2008.
The planned venture, based in Fujian, will have capacity to refine an annual 16 million tonnes of oil and 1.2 million tonnes of ethylene, a key organic compound widely used in industry. - AFP - TheStar
The group, led by Ho Tung Chemical, inked the investment agreement with the government of southeast China's Fujian province and with Sinopec, China's biggest petrochemical group, in Beijing on Tuesday.
The agreement was signed after Taiwan's government, citing environmental considerations, rejected a similar, controversial US$20bil project for a giant refinery and petrochemical complex in western Taiwan.
“Since the project has hit a snag, the government must find a way out for local petrochemical companies, or the companies will gradually disappear,” Ho Tung founder Chen Wu-hsiung told the Taipei-based Economic Daily News.
Local companies are still barred from investing in China's refinery industry and some high-tech sectors despite eased tensions following the election of Beijing-friendly politician Ma Ying-jeou as Taiwan president in 2008.
The planned venture, based in Fujian, will have capacity to refine an annual 16 million tonnes of oil and 1.2 million tonnes of ethylene, a key organic compound widely used in industry. - AFP - TheStar
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