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 BMI Forecast Modelling................................................38 How We Generate Our Industry Forecasts ............................... 38 Petrochemicals Industry ...................................................... 38 Cross Checks ............................................................................ 39