MAKATI CITY, PHILIPPINES - Go-kongwei Group's Manila-based JG Summit Petrochemical Corp. has forged a joint venture with Maru-beni Corp. and Showa Denko KK of Tokyo to put up a $300 million ethylene plant at Pinamucan, Batangas City, north of Manila. The joint venture is part of a $1 billion petrochemical complex. The ethylene plant will have an annual production output of 110 million pounds.
The Philippine Board of Investments granted the project incentives, including tax breaks and duty-free equipment importing.
JG Summit and Marubeni will build other upstream and midstream facilities, including a 386 million-pound polyethylene plant, a 396 million-pound polypropylene plant, and PVC resin plant.
JG Summit is competing with another consortium led by Maka-ti-based Petrochemical Corp. of Asia-Pacific in a race to put up the first integrated petrochemical complex in the Philippines.
Petrocorp is building its own petrochemical complex in the nearby province of Bataan, north of Manila, in partnership with the state-owned PNOC-Petrochemical Development Corp. of Makati City, London-based BP Chemicals Ltd. and Itochu Corp. of Tokyo.