Taiwan-based China Petrochemical Development (CPDC) is set to invest TWD$30bn (US$987m) to build a phenol plant in Jiangsu Province, China.
CPDC will use the company funds to pay TWD$11.5bn of the total investment, and will seek funds from other sources for the rest.
The firm said its board of directors has approved the investment plan and will soon get approval from authorities in Taiwan and China.
The new plant is expected to start its operations two years after regulatory approval.
CPDC has signed a memorandum of understanding with Sinopec Group and the authorities in Fujian Province to build a joint naphtha cracking plant and a joint oil refinery for TWD$456bn (US$15bn), which are scheduled to start production in 2014.
