Petrochem projects worth P15.8B OKd
The Board of Investments has approved three petrochemical projects of conglomerate JG Summit Holdings Inc. (JGSHI) worth P15.8 billion.
Two of the said projects, which will be implemented by the company’s wholly owned subsidiary JG Summit Petrochemical Corp. (JGSPC) were classified as pioneering under the list of preferred activities in the Investment Priorities Plan (IPP). These projects also had the endorsement of the Department of Science and Technology (DOST).
The first JGSPC project worth P4.2 billion will be poured into a facility for the production of butadiene and raffinate, while the second one, worth P3 billion, will be allocated for the manufacture of benzene, toluene, mixed xylene, C8+/C9+ Cut and non-aromatics.
JG Summit Olefins Corp. (JGSOC), another wholly owned subsidiary of JGSHI, was given the greenlight for the expansion of its naphtha cracker facility for the production of additional products namely polymer grade ethylene, polymer grade propylene, mixed c4 and pyrolysis (Py) gas. The said project will entail P8.6 billion worth of fresh investments.
“We welcome investment projects such as these. The company’s initiative and innovation in expanding their petrochemical plants is definitely a big boost to the manufacturing industry and its sub-sectors,” said Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo.
“Parameters in innovativeness/novelty of the activity, innovativeness/novelty of products or processes or equipment to be developed, level of technological expertise required, impact on increasing the level of science and technology in the Philippines and possibilities for commercial operation comply with the requirements for a pioneer status of the projects,” the DOST meanwhile said in its endorsement letter.
According to the BOI, the two JGSPC projects will generate 112 jobs once fully operational by 2021. The firm is expected to produce 70,000 metric tons of butadiene and 89,000 MT of raffinate yearly. The other petrochemical products to be produced are: Benzene at 126,000 MT yearly; toluene (76,000 MT); mixed xylene (46,000 MT); C8+/C9+ Cut (18,000 MT); and non-aromatics (29,000 MT).
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