2003/2/21 Financial Times

Taiwan PVC Pipe Manufacturers Head to Mainland China

The economic boom in mainland China in recent years has boosted demand there for polyvinyl chloride (PVC) pipes, encouraging leading PVC-pipe manufacturers in Taiwan to expand their production lines across the Taiwan Strait

Petrochemical giant Formosa Plastics Corp. has selected Ningbo, Zhejiang Province as site for its first PVC plant in the mainland, in order to access the deepwater harbor nearby.
Nan Ya Plastics Corp., an affiliate of Formosa Plastics Group, already has several PVC-pipe manufacturing plants in the mainland, located in Huizhou, Guangdong Province, Xiamen, Fujian Province, Chongqing, Sichuan Province, Wuhu, Anhui Province, and Dongying, Shandong Province. The company plans to further expand its operations in the mainland by setting up a new PVC plant in Xian, Shanxi Province soon and launching new investments in Wuhan, Hubei Province. Seeing the potential demand for PVC pipes in mainland China, Ocean Plastics Co. (OPC), another leading PVC-pipe maker in Taiwan, has invested around US$8 million in a plant in Hunan Province. In future the company will set up comparatively smaller plants in the mainland to serve local markets. The company's next likely investment target will be in Hubei

Union Petrochemical Corp., a leading petrochemical manufacturer in Taiwan, has also set its eyes on the mainland Chinese market. The company, which mainly produces dioctyl phthalate (DOP) for PVC, has approved a plan to set up a US$5 million petrochemical plant in Zhenjiang, Jiangsu Province to make DOP. China General Plastics Corp., another top petrochemical maker in Taiwan, plans to follow suit by opening a plant in the mainland soon. A ranking official with Nan Ya points out that PVC pipes are steadily replacing iron pipes in the mainland's construction market due to their greater durability and rustproof character. The official indicates that since middle- and long-distance transportation of the large-dimension PVC pipes being made in mainland China would be very expensive, the company early on decided to set up plants in different provinces to meet local needs. Each plant in the mainland can produce an average of 30,000 metric tons of PVC pipes a year, while its plant in Taiwan can turn out 20,000 metric tons of product per month

Demand for PVC pipes in the mainland has been rising significantly as various construction projects for the 2008 Summer Olympic Games in Beijing get underway, and the trend is expected to continue over the next few years. Many of Nan Ya's mainland PVC plants have geared up to meet the expected surge in demand.

Platts 2007/1/4

Taiwan's Union Petchem to start new South China DOP line mid-Jan

Taiwan's Union Petrochemical Corp expects to start up a new dioctyl phthalate line in Zhuhai, South China by the middle of January, a company source said Thursday.
The new line is an expansion of the existing Zhuhai DOP plant, which is currently capable of producing 140,000 mt/year. Once operational, the
100,000 mt/year line will bring the combined output of the Zhuhai plant to 240,000 mt/year.
According to market sources, the additional capacity is likely to dampen current bullish DOP sentiment. DOP prices closed $10/mt up, to $1,565/mt on an at sight basis, at the end of 2006 due to rising feedstock costs.
Union Petchem is also engaged in the construction of a
45,000 mt/year Phthalic Anhydride line in the same complex. The PA line is scheduled for completion in April or May this year. PA together with 2EH, is used to make DOP.
"We want to sharpen our competitive edge," the source said. "With added PA capacity, we can cut costs and are less vulnerable to feedstock price increases. Alternatively, we can also sell PA when margins for DOP are thin," he explained.
UPC has
two other DOP plants, each capable of producing 100,000 mt/year, in Shanghai and Zhong Shan. Both plants are currently operating at above 90% of their nameplate capacities. The new line would bring UPC's total DOP production to 600,000 mt/year.

April 4, 2003 Financial Times

Nan Ya Plastics to set up one more subsidiary in mainland China
an affiliate of Formosa Plastics Group

Nan Ya Plastics Corp., the largest local manufacturer of plastic products listed on the Taiwan Stock Exchange, will establish a new subsidiary manufacturer in Zhengzhou* of Henan Province, mainland China, to produce rigid PVC (polyvinyl chloride) tubes/pipes.    * 河南省鄭州

The Investment Commission under the Ministry of Economic Affairs approved Nan Ya Plastics' investment project on April 1. The Investment Commission has so far permitted the company to invest in mainland China with a cumulative amount of US$500 million (NT$16.26 billion). However, Nan Ya Plastics has actually invested US$360 million (NT$11.64 billion), accounting for 18.7% of the company's paid-in capital

Nan Ya Plastics has set up a number of subsidiary manufacturers with 24 factories in around mainland China. The subsidiary manufacturers' production covers rigid PVC tubes/pipes, rigid PVC sheets, PVC cloth, PVC film, PU (polyurethane) leather, PE (polyethylene) film, plastic leather, BOPP (biaxially oriented polypropylene) film, synthetic leather, and engineering plastics

In light of mainland China's growing demand and market growth potential for rigid PVC tubes/pipes, Nan Ya Plastics decided to establish a new subsidiary manufacturer of the product in Zhengzhou with annual production capacity of 30,000 metric tons. The subsidiary will have initial capital of US$8 million and the company will invest US$4 million for a 50% stake, with the remaining 50% stake to be shared by Taiwanese enterprises there

Nan Ya Plastics started investment in mainland China in 1996 and began to have return in 1999. The company remitted back investment return of NT$100 million in 1999, NT$97.66 million in 2000, and NT$200 million in 2001. Nan Ya Printed Circuit Board Corp., Nan Ya Plastics' domestic subsidiary, operates an integrated PCB (printed circuit board) factory in Kunshan of Jiangsu Province, mainland China. The factory produces PCBs and PCB materials including copper foil, glass fiber, glass fabric, epoxy, and copper-clad laminates

To secure power supply for Nan Ya Printed Circuit Board's factory, Nan Ya Plastics invested US$12 million to set up a thermal power plant with monthly generating capacity of 27.02 million kilowatt-hours beside the factory. The power plant is under construction currently, with inauguration slated for June this year.


June 13, 2003 Financial Times

Formosa Plastics plans acrylates complex in China.

$150 M is to be invested by Formosa Plastics Group in an acrylates complex at Ningbo in China. The complex will have a capacity to produce 160,000 tonnes/y acrylic acid and 230,000 tonnes/y esters. A polyvinyl chloride unit will also be built at the site and a superabsorbents plant is being considered. Nippon Shkubai technology will be used. The plant will be operated and owned by Formosa Acrylic Esters Ningbo, a new subsidiary of Formosa Plastics. The plant is still subject to approval from the Taiwanese government.
Formosa Plastics Group has 4 manufacturing subsidiaries: Formosa Petrochemical; Formosa Plastics; Formosa Chemicals & Fibre; and Nan Ya Plastics. The subsidiaries may join forces to build a 1.5 M tonnes/y ethylene plant at Ningbo. This plan is also subject to approval from the government in Taiwan.
A 600,000 tonnes/y purified terephthalic acid plant is planned by Formosa Chemicals & Fibre from Ningbo. It also intends to bring on line a 300,000 tonnes/y acrylonitrile butadiene styrene unit at the site during 2H 2004. Permission is being sought for a 50,000 tonnes/y polycarbonate (PC) plant. Capacity at the PC plant could be doubled at a later date. Formosa Chemicals & Fibre intends to double capacity for PC at Mailiao in Taiwan to 100,000 tonnes/y during 2004. Government approval has been received by Nan Ya Plastics for a 100,000 tonnes/y polyester chip and 50,000 tonnes/y polyester staple fibre plant at Kunsan in China that will cost NT$600 M. Nan Ya technology will be used by the project that is due on line in 2005.