Formosa Plastics Corp., the flagship entity of the Taiwanese conglomerate Formosa Plastics Group, plans to build a new production site in Texas at a cost of $207 million. The projected completion date is October 2025, and mass production is scheduled for December of that year following a trial run.
When completed, the plant will have an annual capacity to manufacture 100,000 tons of alpha olefins, which are used to make high-density polyethylene (HDPE), among other products. Some 63,000 tons will be used by Formosa Plastics, while the remaining 37,000 tons will be sold on the international market.
One of the company’s goals in building the Texas plant is to secure a supply of raw materials for the production of HDPE because alpha olefins are in high demand in the global market. Citing a recent report by market information advisory firm IHS Markit, Formosa Plastics says demand for alpha olefins in North America is expected to hit 915,000 tons in 2025 but supply will only be 878,000 tons.
Currently, Formosa Plastics Group has production sites in Texas and Louisiana, where its four major entities – Formosa Plastics, Nan Ya Plastics Corp. Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp. – make petrochemical products such as HDPE, low-density polyethylene (LDPE), ethylene, propene, polypropylene and ethylene glycol (EG).