Taiwan-based Formosa Plastics Corp. said at Chinaplas in Guangzhou it will start production of its polypropylene plant in Ningbo, China, in July. The planned production capacity is 992 million pounds per year, and the goal for the first phase production is 330 million pounds, said Ming-Chi Hsieh of the president's office.
Chen Wen Tse, senior specialist with FPC Polypropylene (Ningbo) Co. Ltd., said the products, including homopolymer, random copolymer, injection and extrusion-grade impact copolymers, primarily will supply the Chinese market.
Chen said the demand from biaxially oriented polypropylene film producers stays strong. ``But the breaking point is copolymer for auto, appliances and consumer products markets.''
He said the Chinese market features prominent seasonal changes. The low-season demand for PP used for washer parts, for instance, is only half that of high-season demand.
This is the first update of progress since Formosa delayed the project's startup that was originally scheduled for the third quarter of 2006.
Formosa currently produces PVC, ABS and acrylic ester at its industrial park in Ningbo.