Quangang district in Quanzhou, a city in East China’s Fujian province, signed a contract with Taiwan Grand Pacific Petrochemical Corporation through a video link on March 2, according to local officials.

This means that the project, which will have annual output of 1 million metric tons of propane dehydrogenation and 900,000 tons of polypropylene will officially settle in the Quangang Petrochemical Industrial Park.

With a total investment of NT$50 billion ($1.67 billion) and a planned area of 53 hectares, the project is divided into two phases.

The first phase will start construction at the end of this year. It is expected to be completed and put into operation in 2023, with an annual output value of 10 billion yuan ($1.43 billion).

Officials said the project has advantages of lightweight raw materials, low carbon environmental protection, high yields as well as a simple process route, which can promote the development of downstream medical plastics and food-grade plastic products.

Kang Tao, secretary of the Quanzhou municipal Party committee, said the signing of the agreement had opened up the broad prospect of a mutual benefit and win-win situation. He said it would also become a key link in the construction and replenishment of the strong supply chain of the petrochemical industry in the city.

It will strongly promote the extension of the chemical industry chain in products such as propylene and polypropylene, forming a strong spillover effect, he added.

Grand Pacific Petrochemical Corporation is a well-known enterprise in Taiwan, which is committed to research and development and market development in the petrochemical field.

It is the first company to produce styrene monomer and is the only nylon 66 production company in Taiwan.