Petrochemical Corp. of Asia and the Pacific chief operating officer Henry Leung said "the ball is now in the court of the government to proceed with the project."
"The private proponents are ready to proceed with the project as long as the government is able to assure certain conditions such as tariff protection and adequate market," Leung said.
However, Leung disclosed, the main target of the proposed naphtha cracker production is not merely the domestic market, which is substantial, but the much bigger market of China.
"But the Philippines needs the backing of Malaysia and Brunei to proceed with the project," he said.
Malaysia has the expertise in setting up a naphtha cracker, while Brunei has the cash to invest in such a big project.
President Arroyo and Malaysian Prime Minister Mahathir Mohamad had discussed the project during Mrs. Arroyo’s recent state visit to Malaysia.
But according to Leung, the three local petrochemical firms are currently going through a difficult time with strong competition coming from imported resins as a result of a glut in global resin production.
Leung is also the current president of the Association of Petrochemical Manufacturers of the Philippines (APMP). which is composed of Petrocorp, JG Petrochem and Bataan Polyethylene Corp.
"The three firms have been incurring losses since they began operation. Last year alone, they reported combined losses of about P7 billion," Leung said.
The three firms claimed that smuggling and dumping of cheap resins has eaten into their market.
Earlier, the petrochem industry sought the increase of existing tariff on resins from the current 15 percent to 30 percent.