Taiwan's CPC Corp scarps $12 bn petrochemical project in Malaysia

Taiwanese firm CPC Corp has reportedly scrapped its plans to set up an integrated refining and petrochemical complex in Pengerang, Johor, Malaysia.
 
CPC unit Kuokuang Petrochemical Technology Company shelved the plans, which would have resulted in investment of Ringgits 40 billion ($ 12.39 billion), as the company believed that the project was no longer competitive.
 
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Kuokuang’s proposed Pengerang complex was planning to use naphtha to produce ethylene. However, the shale gas boom has brought down cost of production of petrochemicals in the US. At the same time, there has been an oversupply after expanding in China. CPC is the largest stakeholder in Kuokuang with 43 percent, while the rest of the company is held by other private Taiwanese investors.