Taiwan`s FPG to Cooperate with CNOOC of China

Taipei, Jan. 4, 2011 CENS --Formosa Plastics Group FPG one of Taiwan`s largest conglomerates, has expressed interest to partner with the China National Offshore Oil Corporation CNOOC one of China`s top-three energy concerns, to develop China`s lucrative energy market.

CNOOC has mapped out concrete plan to develop the Ningde Investment & Petrochemical Zone in Fujian Province, southern China, while FPG is actively developing the so-called Haixi economic development region to the west of the Taiwan Strait.

W.T. Wang, chairman of FPG`s Formosa Petrochemical Corp. FPCC noted that over the past few years CNOOC, with specialization in exploring crude oil, has been launching vertical integration by tapping oil-refining and naphtha-cracking businesses.

At the end of 2010, FPG led a delegation of approximately 50 executives of the FPG`s major subsidiaries to the headquarters of the CNOOC in Huizhou of Guangdong province, aiming to study the firm and transplant know-how to the group`s factory management system.

With production base in Huizhou of Guangdong province, CNOOC plans to set up an oil-refining facility in Ningde in the neighboring Fujian province with annual capacity of 20 million metric tons. In addition, the company will also set up a naphtha-cracking plant in Ningde with annual output reaching two million metric tons of ethylene, along with petrochemical middle- and down-stream plants.

The Ningde Investment & Petrochemical Zone will likely be included in China`s 13th five-year economic development plan; while the FPG believes in the development potential of the Ningde zone as a suitable spot to set up petrochemical plants.