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Formosa to replace pipelines at naphtha cracking complex
30
Jul '11
Taiwan-based Formosa Plastics Group (FPG) has announced that it would replace pipelines at its Mailiao naphtha cracking complex located in Yunlin County.

The decision to renovate 1,063 pipelines that total 1,266 km in length was taken after a series of fire incidents in the petrochemical complex during the past few months.

The renovation is aimed at removing the main cause of frequent fire incidents, which is being attributed to the bad climate in the region, which has led to serious erosion of facilities and equipment.

The renovation is expected to be completed in three years time and would involve a cost of NT$ 12 billion with an estimated labour force of 2,500.

For the purpose, FPG has already sought clarification from the Council of Labour Affairs (CLA) regarding the possibility of hiring labourers from foreign countries.

As per the existing rules, a project must fulfill the criteria of the central-level regulator for hiring overseas labourers. The criteria states that the project must be a major economic construction project, its cost should exceed NT$ 10 billion, and be requiring more than eighteen months of engineering period.

The FPG's proposed pipeline renovation project qualifies under the last two conditions, but it would need clearance from the Ministry of Economic Affairs (MOEA) as a major economic construction project.

Moreover, for hiring foreign labourers, there exists a cap of 20 percent of the total labourers required for a project, as foreign labourers are considered supplementary labour force. Thus, the FPG would be able to hire only around 500 workers from abroad even if its gets the required MOEA clearance.

Fibre2fashion News Desk - India


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