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Formosa builds another plastics production facility in Louisiana
A famous company from China expressed a strong desire to construct another petrochemical complex in the US. Formosa plans to invest almost US$10 billion in the project described. The facility will be located in St. James Parish. The company wants to fulfill the construction in two stages. The first one is to be finished by the middle of 2016. It will include:
- ethane cracker
- downstream facilities.
The next stage is to be completed by 2022. As a result of the second phase, the capacity of the complex will be increased twice.
The key purpose of the new construction is the conversion of ethane to ethylene. However, the facility will have other options. It will be able to further produce polyethylene, while the output will be liable to customization (low or high density). The plant will also produce ethylene glycol, polypropylene, and plenty of other derivatives.
The first plans for the new facility were announced in 2014 during the visit of Gov. Jindal to Taiwan.
Formosa’s activity in the US
Formosa Petrochemicals has been active in the US for many years. They already have several petrochemical complexes in the parishes of East Baton Rouge & Pointe Coupee. The chairperson of the company (Bao-Lang Chen) expresses a strong belief in the effective cooperation with the US partners especially in the US state of Louisiana. It is connected with the motivation for their activity in the region including a competitive incentive package and grant for the infrastructural costs spending, which totals US$12 million. There are also nice tax exemption and workforce development programs offered for FP in Louisiana.
Formosa Petrochemical Corp.: general information
The company under consideration was founded in 1992. The initial direction of the firm was crude oil and refined products/olefins selling. Today they deal with the production of ethylene, propylene, butadiene, and other products.
The company is a leading manufacturer in Taiwan. They keep expanding and building more and more plants in various parts of the world. Along with the products described above, Formosa also offers electricity, steam, and other utilities.
For more information concerning Formosa Petrochemical and its activity in Taiwan and across the globe, visit the official website of the company.