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The
U.S. Environmental Protection Agency (EPA) is likely to roll
back some of its regulations after the appointment as head last
month of Scott Pruitt, who sued the agency multiple times as
Oklahoma state attorney general.
The company should benefit from less stringent environmental
regulations under the Trump administration, Formosa
Petrochemical Chairman Chen Bao-lang said. A subsidiary of
Formosa's parent company admitted to massive pollution in
Vietnam last year.
"We are more optimistic about the investment," Chen told Reuters
in an interview in the group's headquarters in Taipei. "At least
the obstacles will be fewer... We're aiming to get an air permit
in August 2018."
Formosa Petrochemical is part of Taiwanese conglomerate Formosa
Plastics Group, which has production facilities across Taiwan,
China, the United States and Vietnam.
Another Formosa subsidiary, Formosa Ha Tinh Steel, paid $500
million in damages in Vietnam after it admitted last year that
it polluted more than 200 km (125 miles) of coastline in April,
killing more than 100 tonnes of fish and devastating the
environment, jobs and economies of four provinces.
PRODUCTION TO START ONE YEAR EARLIER
The petrochemical plant will be located in Louisiana's St. James
Parish. The group first submitted its application to the
Louisiana state government in September 2015.
"Trump has said his priority is the U.S. economy first, and then
environmental protection," said the chairman, who is also an
executive member of the group's board. "So far everything is
running smoothly."
Formosa is now hoping to start production in 2021, one year
ahead of schedule, after getting the permit, he said.
Formosa Petrochemical is leading the project along with another
member of the group, Formosa Chemicals & Fibre Corp..
The first phase of the project includes an ethane cracker with
an annual capacity of 1.2 million metric tonnes and 600,000
metric tonnes of propylene. In the second phase, slated for
construction by March 2025, it will build another ethylene plant
with annual capacity of 1.2 million tonnes, Chen said.
The group is also expanding its U.S. production facilities in
Texas with a $5 billion investment to increase its output of
ethylene glycol, scheduled for completion in 2018.
(Reporting by Faith Hung; Editing by Richard Pullin and
Christian Schmollinger)
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