Taiwan Petrochemicals Report 2008
http://www.companiesandmarkets.com/Summary-Market-Report/taiwan-petrochemicals-report-2008-54426.asp
- Market - Energy and Utilities
- Published Date - 25/01/2008
- Report Type - Market Report
- Country - Taiwan
- Number of Pages - 40
Report Summary
Industry Overview The Taiwanese petrochemicals industry has played an important role in the economic development of the country. The Industrial Development Bureau (IDB), under the Ministry of Economic Affairs, is reportedly working towards making the industry the eighth largest in the world by 2010. However, the country faces stiff competition from other regional producers who enjoy relatively lower labour costs and possess larger domestic markets. Taiwan lacks indigenous oil and gas resources and is dependent on importing refinery and petrochemicals feedstock. Furthermore, the country’s exports are chiefly dependent on the Chinese market.
Industry Structure The industry consists mainly of approximately 50 upper- and middle-stream manufacturers based in Kaohsiung. Local players including Formosa Plastics Corporation (FPC), ChiMei, Lee Chang Yung Chemical and Chinese Petroleum Corporation (CPC) are increasingly gaining prominence in the international market.
Industry Developments US-based ABB Lummus Global has won a contract for the construction of a petrochemicals complex at Lin Yuan in Kaohsiung from CPC. In June 2007, local joint venture Kuokuang was reportedly conducting feasibility analyses for the construction of a 1mn tonne per annum (tpa) naphtha cracker.
Formosa launched a new 1.2mn tpa naphtha cracker at Mai Liao in May 2007. Reports in January 2007 suggested that local China Petrochemical Development Corporation CPDC is considering plans to construct a second hydrogen plant in southern Taiwan. Furthermore, a number of plants were shut down during the year for planned maintenance turnarounds.
New Regulations Environmental awareness has been growing in the country. Some critics think that environmental impactrelated assessments by the Environmental Protection Administration (EPA) for newly launched projects may slow the pace of growth to some extent. Reduction of maximum allowable sulphur content to 50 parts per million (ppm) from 180ppm is a key requirement under the newly proposed guidelines governing Taiwanese refiners. The guidelines are in line with the government’s medium-term domestic environmental standards for petroleum products.
Table of Contents
Executive Summary .........5
Industry Overview.................................................................. 5
Industry Structure .................................................................. 5
Industry Developments .......................................................... 5
New Regulations .................................................................... 5
SWOT Analysis.................6
Taiwan Petrochemicals Industry SWOT ................................ 6
Taiwan Business Environment SWOT.................................... 6
Taiwan Economic SWOT....................................................... 7
Market Overview...............8
Production ............................................................................. 8
Industry Estimates ................................................................. 8
Table: Taiwan Commodity Polymer Exports, February-July 2006 (in tonnes) .................................................................................................... 10
Market Structure.................................................................. 11
Table: Petrochemicals Sector – Cracker Capacity Data & Forecasts ('000 tpa)................................................................................................ 13
Regulatory Structure............................................................ 14
Industry Trends And Developments ............................................................15
Repair And Maintenance Shutdowns ................................... 15
Other Projects...................................................................... 16
Expansion Plans Of FPG And Its Subsidiaries .................... 18
New Regulations .................................................................. 19
Business Environment ..................................................20
Introduction .............................................................................. 20
Ratings Overview...................................................................... 20
Table: Indicators ................................................................. 21
Weighting.................................................................................. 21
Table: Weighting ................................................................. 22
Taiwan: Business Environment Ranking................................... 22
Limits To Potential Returns ................................................. 22
Risks To Realisation Of Potential Returns ........................... 22
Industry Forecast Scenario ...............................................................24
Table: Taiwan Historical Data And Sector Forecasts ......... 26
Economic Outlook..........27
Table: Taiwan Economic Activity ........................................ 29
Company Monitor...........30
Formosa Plastics Group...................................................... 30
Chinese Petroleum Corporation (CPC) ............................... 33
Taiwan Styrene Monomer Corporation ............................... 35
USI Corporation .................................................................. 36
BASF Taiwan....................................................................... 37
How We Generate Our Industry Forecasts ............................... 38
Petrochemicals Industry ...................................................... 38
Cross Checks ............................................................................ 39