Formosa Plastics Corporation, established over fifty years ago in
1954, is currently capitalized at NT$57,204 million. Our main business
area is intermediate raw materials for plastics. Our products include PVC
resins, VCM, caustic soda, hydrochloric acid, MBS, HDPE, EVA/LDPE
and LLDPE. Our annual production capacity for PVC resins is 1,301,000
MT/Y. Not only are we the largest producer in Taiwan, if our US
operations are also included, but also our total capacity of 2.92 million MT/Y makes us the
largest manufacturer of PVC resins in the world. Our annual production capacity for VCM is 1,580,000 MT/Y, the largest in Taiwan. Utilizing the ion exchange membrane process instead of mercury in our caustic soda production, Formosa Plastics Corporation boasts an annual production capacity of 1,600,000 MT/Y. With an annual production of MBS at 19,700 MT/Y, PA at 25,000 MT/Y respectively, annual capacity for these products in total is 44,700 MT/Y. Annual production capacity of HDPE currently stands at 530,000 MT/Y, making us the largest producer in Taiwan. Annual production capacity of EVA/LDPE and  LLDPE stand at 240,000 and 264,000 MT/Y respectively.

Processed plastic products are developed in coordination with production of HDPE at our Hsinkang plants. Production of shopping bags, roll bags, garbage bags and other products has reached a yearly capacity of 10,000 MT.

Our fiber products include acrylic staple fiber and carbon fiber. Our yearly capacity of 72,000 MT of acrylic fiber makes us Taiwan's largest producer of the product. The carbon precursor needed to produce the 5,050 MT/Y of carbon fiber was developed by our company. We are one of the few companies in the world to have developed this product, which has greatly contributed to the development of the high-tech sector in Taiwan.

In response to the government's call for the development of high value-added products and precision chemical industries, we also produce specialty chemicals such as acrylic acid, esters, hydrochloro-
fluorocarbons (HCFCs), AN, MMA, ECH and MTBE. Yearly capacity of acrylic acids and esters stands at 262,000 MT, making us the largest producer in Taiwan. To utilize high purity acrylic acid (HPAA) produced by our acrylic acid and ester plant, we have built a super absorbent polymer plant with an annual production capacity of 40,000 MT in the Hsinkang industrial zone. This facility is the only super absorbent polymer production plant in Taiwan. Annual production capacity of AN currently stands at 280,000 MT/Y, making us the largest producer in Taiwan and supplied to our Acrylic Fiber plant and FCFC's ABS plant. Annual production capacity of MMA stands at 98,000 MT/Y. Annual production capacity of ECH stands at 100,000 MT/Y, making us the largest in Asia and mainly supplied to affiliate Nan Ya Plastics for epoxy production. Annual production capacity of MTBE stands at 174,000 MT/Y, mainly supplied to our affiliate Formosa Petrochemical as gasoline additives. We also produce 25,000 MT/Y of POM, another product developed using our own technology.

Our calcium carbonate products include Taical, U-cal, raw lime and light master batch. We are Taiwan's only producer of calcium carbonate.

FPC has established an Engineering & Construction Division, which not only provides public utilities, but also handles engineering design & planning. In addition, a piping prefabrication shop was established to meet piping demands for FPG's Sixth Naphtha Cracker Project, using automatic equipment to improve the efficiency and quality of our work.

In accordance with the company's strategy of diversification, an Electronics Department was established. This department has undertaken a special project, which had given us full capability in programming software and hardware for automated design and planning. We have also worked with Fuji Electric of Japan on large-scale dispersed machinery and the design and production of distributed control system (DCS).

We are currently pushing ahead with the Sixth Naphtha Cracking Project, which includes a total of twelve plants producing PVC, VCM, C4, Caustic Soda, MMA, ECH, AN, AA/AE, HDPE, EVA, LLDPE and Carbon Fiber. All the plants were completed and commenced production. Now, we are pushing the debottlenecking & expansion plan of phase IV of the Sixth Naphtha Cracking Project. When these plants come on-line, they will not only add the company's operating revenue, but they will also help to relieve the national shortage of basic petrochemical raw materials. As the output of the above plants can be further processed into specialty chemicals and engineering plastics, the plants are indispensable to the upgrading of the local plastics, electronics and synthetic fiber industries.

Because of the domestic downstream processing producers moving into China and the economic reformation in China opening over ten years, its petrochemical industry has already quickly rolled and demand for the raw material must rely on the import. It will create more opportunities after China joining WTO. However it's very difficult  to sell raw material into China from Taiwan due to high tariff in China. In order to fight for China market, our company has already actively advanced into China and planned the petrochemical zone in Ningbo China. Now we invest one PVC plant for capacity of 300,000 MT, commenced production in January 2005, one AE plant for capacity of 230,000 MT, commenced production in March 2006, one PP plant for capacity of 450,000 MT, commenced production in April 2008, and one SAP plant for capacity of 30,000 MT, commenced production in March 2008.