TIPCO, Taiwan firm tie up for co-generation project

Trust International Paper Corp. (TIPCO) a major newsprint producer in the Philippines, concluded a memorandum of understanding with the Formosa Heavy Industries (FHI) of Taiwan for the establishment of a 100-megawatt co-generation power plant to support its production expansion program. The power plant project will be implemented in two phases, with each phase having a 50 MW capacity.

The coal-fired co-generatioin facility will reduce TIPCO’s operating cost to gain competitive advantage in the paper industry in the global market. It will be established within the TIPCO complex in Mabalacat, Pampanga on a build-operate-transfer scheme under which FHI will build and operate the plant for a period of at least 25 years. This will support TIPCO’s move to expand its production capacity and meet the anticipated global demand for paper products.

TIPCO’s major export market for its paper products include Singapore, Taiwan, Hong Kong, China, Thailand, Malaysia, India and Hawaii.