Taiwan approves Formosa's styrenic block copolymers JV with US Kraton

Taiwan's Fair Trade Commission has approved a 50:50 joint venture between Formosa Petrochemical Corp., or FPCC, and US' Kraton Performance Polymers to produce hydrogenated styrenic block copolymers in Taiwan, the commission said Thursday. The JV, Kraton Formosa Polymers Corp., will run a 30,000 mt/year plant in Mailiao, and the facility is slated to be operational from the second half of 2013. FPCC had to seek approval from the FTC as it has a more than 25% share in Taiwan's ethylene and propylene markets, the commission said.

Kraton and Formosa announced their JV plans on July 14 this year, and said they expected to finalize the terms of the agreement by December 31, 2011.

The plant was expected to cost between $165 million and $200 million.