Taiwan becomes the world's No.1 producer of PTA

Taipei, May 13, 2003 (CENS)--Due to the expansion of production capacity by domestic petrochemical firms, Taiwan will replace South Korea as the world's largest producer of purified terephthalic acid (PTA) in May.

Taiwan's overall annual production capacity will reach 4.94 million metric tons of PTA in May due to production expansions by Formosa Chemicals & Fiber Corp. (FCFC) and China American Petrochemical Co. (CAPC)

Although the price of PTA has fallen along with other petrochemical materials in the past several months, FCFC still plans to expand PTA production at an aromatic products plant in Yunlin County. The new capacity is expected to help Taiwan keep its status as the world's largest producer of PTA in the next few years.

A domestic trader of petrochemical products said the spot price for PTA has fallen 50% since the beginning of this year to US$450 per metric ton.

An industry insider warns that mainland China could dethrone Taiwan as the No.1 PTA producer since six new PTA plants there are scheduled to be constructed there, including plants of Taiwan's Far Eastern Group and FCFC.

As many foreign firms are reassessing or postponing their investment projects in mainland in light of the outbreak of the severe acute respiratory syndrome (SARS), some domestic firms say Taiwan will be able to retain the world's No.1 position.

PTA is a raw material for the production of polyester chips used for producing polyester filaments and bottles. Taiwan currently has four major producers of PTA, including CAPC, FCFC, DuPont-Far Eastern Co., and Tuntex Petrochemicals Inc.

To facilitate its fast-growing polyester industry, the mainland has to import four million metric tons of PTAs per year. FCFC, CAPC and other firms have investing heavily in the expansion of PTA output in Taiwan over the past few years to meet the surging mainland demand.

After completing construction of a NT$15 billion (US$432.28 million at US$1:NT$34.7) plant near Taichung Harbor in March, CAPC replaced FCFC as Taiwan's largest producer of PTAs. FCFC is expected to regain the No. 1 position with the launch of a new PTA plant at the company's Yunlin complex.