BP And Formosa To Form Taiwan Acetic Acid Joint Venture
17-Oct-2002
BP announced today that it has entered into an agreement with Formosa chemicals and Fibre Corporation (FCFC) to form a 50:50 joint venture to produce acetic acid at FCFC's Mai Liao petrochemicals complex on the west coast of Taiwan.
The new joint venture company, to be incorporated and named Formosa BP Chemicals Corporation, intends to build a 300,000 tonnes a year acetic acid plant at Mai Liao which will use BP's proprietary Cativa(tm) technology. The company also intends to build a plant producing 200,000 tonnes a year of carbon monoxide, a key feedstock for acetic acid production. The new plants are expected to come fully on stream in early 2005.
In addition to the Cativa(tm) technology, BP will provide marketing and technical support to the joint venture. It is anticipated that the new acetic acid capacity will be needed to satisfy rapidly growing domestic demand from Taiwanese acetic acid derivatives producers. BP is currently the leading supplier of acetic acid to Taiwan, through imports from its other producing plants and joint ventures worldwide.
FCFC will supply the joint venture with the world-class infrastructure of the Mai Liao site and local production and engineering expertise. Agreements will also be entered into with FCFC and its affiliated companies for the supply of utilities and services to the new company.
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