Formosa Plastics Group sparked a wave of Taiwanese investment when it announced plans to build a US$7 billion petrochemical complex in the Haicang investment zone in the late 1980s.
In the event, the Taiwanese plastics giant built only two PVC pipe and parts factories with a total investment of US$79.81 million.
Formosa chairman Wang Yung-ching scaled back his plans in 1992 after China refused to allow him to sell all output on the domestic market.
The municipal government did not feel it had lost out when the group exchanged its huge investment for the two small factories, in which Formosa holds 60 and 65 per cent stakes.
Xiamen's secretary-general Shi Zhaobin said: 'If Mr Wang had not proposed his investment interest for Haicang, we [Xiamen] would not have created today's Haicang investment zone.' The State Council approved Haicang as a state-graded investment zone in 1989 to house Mr Wang's proposed complex.
Haicang administrative committee vice-director Du Fusheng said the government had invested 4.6 billion yuan (about HK$4.27 billion) to level 21 square kilometres of farmland and build roads, bridges, a power plant and port.
