Image via WikipediaFinally, the Gokongwei Group is going to start construction of its long-overdue $500-million naphtha cracker project in Batangas, Board of Investments managing head Cristino L. Panlilio said.
Panlilio told reporters that Lance Gokongwei, president of JG Summit Holdings Inc., who paid him a courtesy call last week and informed him of the project’s development.
“He said that project construction will start in January this year. It is rough half a billion dollar project,” Panlilio said.
The naphtha cracker plant was originally registered with the BoI in 2005 at a project cost of P25.6 billion under the JG Summit Petrochemical Corp. Based on that original registration, the plant was supposed was supposed to start commercial in 2008.
In May 2008, however, the company revised the project with a new commercial operation target of January 2012. At that time, the project cost already ballooned to P34.38 billion, P8.7 billion more than its original P25.6 billion because of the foreign exchange depreciation at that time. It was placed under an entirely new unit – JG Summit Olefins Corp.
This time, however, Panlilio said the project cost is roughly half a billion dollars or back to its original cost of P25 billion. The reduced cost could largely be attributed to the strong peso against the US greenback.
http://www.mb.com.ph/node/290286/gokongwei-group-
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