CPDC to Move Half Petrochemical Production Capacity to Jiangsu

Taiwan-based China Petrochemical Development Corp. (CPDC) has resolved to relocate half of its overall production capacity to Jiangsu province, China to cope with the park-rezoning resolution by the government.

The company made the move as the government here has requested it to relocate

its plant in Dashe Petrochemical Park in Kaohsiung City, southern Taiwan in seven years from now on.

Almost all petrochemical manufacturers located in the Dashe Petrochemical Park face the problem of relocation. Other major firms located in the park include USI Far East Corp., Grand Pacific Petrochemical Corp., Lee Chang Yung Chemical Industry Corp., China Man-made Fiber Corp., Taiwan Synthetic Rubber Corp. and Pan Asia Chemical Corp.

CPDC said it will duplicate the operations of its production facility in Dashe Petrochemical Park to Jiangsu Province in the foreseeable future. The company said the relocated production capacity accounts for approximately 40% of its overall profitability.

Another petrochemical firm, the state-run Chinese Petroleum Corp. (CPC), is expected to move out all of its oil-refining facility in Kaohsiung City, dubbed the fifth naphtha-cracking plant, in two years from now on. The relocation of CPC’s oil-refining facility will also affect the persistence of the downstream petrochemical firms in Dashe Petrochemical Park.

An official of the Dashe Petrochemical Park Service Center noted the eradication of the Dashe Petrochemical Park will affect NT$425.6 billion in annual production value plus 160,000 job opportunities, or half the population of Keelung City in northern Taiwan.

(cens.com, Edited by Topco)