Cheap US gas drives Formosa Plastics expansion

November 22, 2013

Source: Brian Wingfield & Yu-Huay Sun
Department: Hydrocarbon Processing

The company asked federal and state environmental regulators to approve plans for an ethane cracker unit and downstream derivatives, Formosa Plastics Vice Chairman Susan Wang said in an interview. She is visiting the US as part of a business delegation led by former Taiwan Vice President Vincent Siew.

WASHINGTON (Bloomberg) -- Formosa Plastics is seeking United States' permits for a $2 billion expansion of its Texas operations as cheaper natural gas prices make US production more competitive.

The company asked federal and state environmental regulators to approve plans for an ethane cracker unit and downstream derivatives, Formosa Plastics Vice Chairman Susan Wang said in an interview. She is visiting the United States as part of a business delegation led by former Taiwan Vice President Vincent Siew.

"Because of shale gas, the cost of making petrochemical and plastic-related products is becoming very competitive here in the United States," Wang said. "It's probably as cost effective as in the Middle East."

The investment is bigger than was previously planned by Formosa Plastics as of February 2012, when it said it would spend $1.7 billion to build two factories and a polyethylene plastics plant in Texas.

Read the full Cheap US gas drives Formosa Plastics expansion article.

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