The Ministry of Economic Affairs will pull out all stops to ensure the sustainable development of Taiwan’s petrochemical industry, MOEA Minister Shih Yen-shiang said April 22.
Shih made the remarks after President Ma Ying-jeou earlier in the day urged the ministry to find alternative sites for the Kuokuang petrochemical complex originally set for construction on reclaimed land in the western county of Changhua, due to controversy over the project’s environmental impact.
“Priority will be given to helping local firms cut carbon emissions, upgrade their manufacturing facilities, adopt the most advanced technology and pursue higher value products through R&D efforts,” Shih stressed.
“We will organize firms from the supply chain to form an industry consortium to facilitate the process,” the minister said, adding that the government will provide incentives and subsidies.
According to MOEA statistics, output derived from Taiwan’s petrochemical sector totaled NT$3.3 trillion (US$114 billion) in 2009.
The suspension of the Kuokuang project could have a significant impact on the country’s signature and basic industries, such as green energy and biotechnology, which depend on the new plant for key materials including ethylene.
The supply of the chemical will become even more squeezed when the country’s fifth naphtha cracker retires from service in 2015, according to the MOEA.
“The third naphtha cracker, which is scheduled for a facility upgrade by 2013, will partially fill the void,” Shih said. The MOEA will also arrange imports of ethylene and increase the efficiency of the fourth naphtha cracker for additional production if necessary.
Shih said the MOEA will continue to assist Kuokuang in finding a suitable site.
