Taiwan’s state-run petroleum company, CPC Corporation, Taiwan, is in talks with several countries to export one of its naphtha cracker plants.
The plant in question is the Fifth Naphtha Cracker in the southern city of Kaohsiung, which is set for closure at the end of this year. But since the plant is only about 20 years old, much of the hardware is still in good condition.
CPC Chairman Lin Sheng-chung said Wednesday that the company is in talks with several countries, including Indonesia, Myanmar, and Mexico, which are looking to further develop their petrochemical industries. Lin said that Indonesia, in particular, has been proactive about seeking a deal.
“We are still in negotiations, because when it comes to joint ventures, it takes more time to discuss the terms, and because they want us to export the entire plant," said Lin.
"It’s a joint venture, not simply a sale, and that involves the transfer of technology, installation, production, and whether we want to buy back what we produce or sell it on the local market," he said. "These are all things we’re discussing.”
Lin says he’s confident that a deal can be reached by year’s end, and that a contract can be signed. But since CPC is a state-run company, any deal will still need approval from the economics ministry, the Cabinet and the legislature .