MOSCOW (MRC) -- Formosa Chemicals & Fiber Corp.(FCFC), part of Formosa Petrochemical, announced on 30 Sept. 2016 that it would shut down its nylon production plant in central Taiwan, beginning next week, due to the government's failure to renew permits for FCFC's cogeneration equipment, Reuters reported.
Formosa has applied to renew the license 37 times, but the government rejected the applications, telling the company to apply for a new permit because the amount of coal and steam used in the production process has changed over the decades.
"We are facing a major crisis," said the report citing FCFC Vice Chairman Hong Fu-yuan. "We have stopped shipping raw materials used in making products today."
As MRC informed earlier, Formosa Petrochemical Corp. is studying the feasibility of building a USD9.4 bln industrial complex in St. James Parish, USA. The project, to be built on the west bank of the Mississippi River, would be one of the largest single-site ethylene production complexes in the world and result in the creation of 1,200 new direct jobs. The initial phase of construction and development was to begin in mid-2016, and the second phase would begin in 2022. Formosa Petrochemical Corp. is part of the Taiwanese Formosa Group, which operates three plastics manufacturing locations in East Baton Rouge and Pointe Coupee parishes.
Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).