ho tung chemical corp (1714) Snapshot

Ho Tung Chemical Corp., Annual General Meeting, Jun 19, 2013.

Ho Tung Chemical Corp., Annual General Meeting, Jun 19, 2012.

Petrochemical Industry Association of Taiwan, announced four Taiwanese listed petrochemical companies -- Ho Tung Chemical Corp., LCY Chemical corp., USI Far East Corp. and China Petrochemical Development Corp. will chip in for the $15 billion Gulei venture along with Chinese investors. According to the agreement, the Gulei petrochemical complex will become operational by 2015, with its refinery processing 16 million tons of crude oil annually and naphtha cracking plant churning out 1.2 million tons of ethylene. Although Taiwanese petrochemical companies hoped to launch a wholly-owned operation in China, they ended up securing a 50% stake in the new venture because the Chinese government imposes a no-more-than-half cap on foreign investments in the sector. The project is still pending approval from China's National Development and Reform Commission and Taiwan's Ministry of Economic Affairs. The Gulei port zone in Fujian Province also needs land reclamation. Therefore, construction on the new petrochemical complex is not expected to get underway until after Taiwan's next presidential election in January 2012. The supply of petrochemical materials could be further squeezed after state-run oil refiner CPC Corp. Taiwan's fifth naphtha cracker is shut down in 2015 when its license expires.