Impact of Kaohsiung shutdown to be significant

At least a dozen downstream petrochemical plants in Taiwan face closure if the government pursues its policy to relocate state-run Chinese Petroleum Corp.’s (CPC) oil refinery in Kaohsiung, said M.C. Huang, director of the Jenwu-Tashe Industrial Park’s service center. The government has promised to move the refinery due to pressure from environmental groups. A deadline of 2015 was set, but officials want to move the refinery ahead of schedule. At present, CPC’s refinery supplies about 45% of the island’s total demand for petrochemical raw materials. An industrial assessment report by the Taiwan Institute of Economic Research, says shutting down CPC’s refinery will induce losses of US$13 billion in the island’s production value, and a loss of 163 000 jobs. Companies have called on the government to delay the move and map out a development policy for downstream petrochemical players. (July 17, 2006)