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(Plastemart) -- As oil costs
escalate past USD 100, and upstream naphtha at USD 990 peaks to a 29 month high,
Formosa Petrochemical Corp. (FPCC) plans to switch to liquefied petroleum gas
(LPG) to partly replace naphtha in ethylene production. This switch will reduce material
costs and boost earnings, as reported by CENS. The move will also benefit FPCC`s
affiliated firms including Formosa Plastics Corp., Nan Ya Plastics Corp. and
Formosa Chemical & Fibre Corp., which heavily rely on ethylene in
production.
At present, LPG is quoted USD 84 per ton lower than naphtha. If FPCC uses
LPG to partly replace naphtha, it will be able to increase gross profit by USD
21 mln per month in producing ethylene.
mrcplast.com
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