Formosa Plastics plans $11.3-billion investment in Ningbo, US and Vietnam

Taiwan-based Formosa Plastics Group, the world’s second-largest producer of polyvinyl chloride by output, plans to start three investment plans next year that will cost a total of $11.3 billion, the Economic Observer Newspaper reported.

The report said that the Taiwanese company will invest about $2.3 billion to expand a plant in Ningbo, Zhejiang province of mainland China, to increase the petrochemical complex’s annual output by 2.9 million metric tonnes and its annual sales by RMB20 billion per year. The expansion project is expected to be completed by 2014.

In the first ten months of this year, the Ningbo plant booked operating revenue of RMB17.7 billion, after registering revenue of RMB16.4 billion in 2009.

The company also plans to invest $8 billion in a carbon steel plant in Vietnam, which is expected to start operation in three years and to become the second-largest steel plant in Asia and the six-largest in the world.

Furthermore, the company plans to invest about $1 billion in an expansion project in the U.S. to increase its annual capacity of ethylene by 450,000 metric tonnes and annual capacity of propylene by 400,000 metric tonnes.

Formosa Plastics Group, the most profitable company in Taiwan, reported a net profit of NT$91.8 billion in 2009.

Tags: Formosa Plastics Group, Formosa Vietnam