China Petrochemical Development Corporation and Formosa Plastics Group announced that they will establish a joint venture. They explained that the joint venture will have capital of NT$6.0 billion, with China Petrochemical Development Corporation holding a 50% interest and 4 Formosa-affiliated companies contributing a total of NT$3.0 billion for the remaining 50%.
Taiwanese chemicals major China Petrochemical Development Corporation and Formosa Plastics Group announced that they will establish the joint venture “Formosa China Advanced Chemicals.” Capital will be NT$6.0 billion, with China Petrochemical Development Corporation holding a 50% interest and 4 Formosa-affiliated companies contributing a total of NT$3.0 billion for the remaining 50%.
China Petrochemical Development Corporation explained that the investment ceiling of NT$3.0 billion is an investment limit over multiple years, rather than a requirement to pay the entire amount in cash over a short period. Operations are scheduled to begin in December 2028 for Phase 1 and December 2030 for Phase 2. Future funding plans will proceed based on resolutions of the board of directors and applicable laws and regulations.
For financing, the company has already resolved to issue its second unsecured convertible bonds in August this year. The aggregate maximum amount is NT$1.0 billion, the term is 5 years, the coupon rate is 0% and the conversion price is NT$111.6. This will advance preparations for funding the joint venture.
China Petrochemical Development Corporation explained that the purpose is to jointly build an advanced electronic-grade sulfuric acid supply system in Taiwan by combining its technology and production capabilities for electronic-grade sulfuric acid with Formosa Plastics Group's raw materials, land, utility facilities and production scale.