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Formosa Plastics Group

Formosa Plastics Group

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Formosa Plastics Group is a Taiwanese
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

 conglomerate of diverse interests, including biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...

, petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....

 processing and production of electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

 components. The Formosa Plastics Group (FPG) was founded by Wang Yung-ching
Wang Yung-ching
Wang Yung-ching was an influential entrepreneur who founded a large business empire in Taiwan. According to the 2008 Forbes survey, he was the 178th richest person in the world with an estimated net worth of US$5.5 billion...

 (王永慶) and his brother Wang Yung-tsai
Wang Yung-tsai
Wang Yung-tsai Wang Yung-tsai (also known as YT Wang) Wang Yung-tsai (also known as YT Wang) (traditional Chinese: 王永在; (January 24, 1921) is the 2nd little brother of Wang Yung-ching (王永慶). Wang Yung-tsai's older brother Wang Yung-chung died of Tuberculosis in 1944. Since he was little he has...

 (王永在) and is chaired by Lee Chih-tsuen.

Growth of FPG


The Formosa Plastics Group was formed in 1958 to reflect vertical integration
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...

 of the PVC
Polyvinyl chloride
Polyvinyl chloride, commonly abbreviated PVC, is a thermoplastic polymer. It is a vinyl polymer constructed of repeating vinyl groups having one hydrogen replaced by chloride. Polyvinyl chloride is the third most widely produced plastic, after polyethylene and polypropylene. PVC is widely used in...

 manufacturing process by the Formosa Plastics Corporation (FPC). Nan Ya Plastics Processing Corp. was formed to purchase PVC resins produced by FPC. A third member of the group, New Eastern Plastics Product, was formed to manufacture those processed resins into consumer goods. Nan Ya and New Eastern were later merged into a single entity, Nan Ya Plastics Corp., and upstream integration was achieved in the 1990s through the construction of an ethylene
Ethylene
Ethylene is a gaseous organic compound with the formula . It is the simplest alkene . Because it contains a carbon-carbon double bond, ethylene is classified as an unsaturated hydrocarbon. Ethylene is widely used in industry and is also a plant hormone...

-producing naphtha
Naphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...

 cracking plant and a coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

-burning power plant. In Taiwan, FPG has also diversified into many other fields, including textiles, electronics, medicine, skin care, automobile manufacturing, gasoline retail and petroleum refining. The complete list of constituent firms is below.

FPG’s overseas expansion has focused primarily on the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...

. The group has purchased or constructed many PVC factories and chemical production facilities in both countries. American holdings also include Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

 properties containing over 200 oil wells and lands rich in natural gas, pipeline and production firms, and an ethylene plant in Point Comfort, Texas
Point Comfort, Texas
Point Comfort is a city in Calhoun County, Texas, United States. It is a part of the Victoria, Texas Metropolitan Statistical Area. The population was 781 at the 2000 census.-Geography:Point Comfort is located at...

 that was constructed in 1988. Chinese expansion has included a power plant in Zhuangzhou, Fujian Province and at least 40 FPG-built factories across the country.

FPG’s non-manufacturing operations include the Chang Gung Memorial Hospital, named after the late father of the FPG chairman, Wang Chang-gung. Since its founding in 1976, the non-profit hospital has expanded to 5 cities in Taiwan. In 1984, the Linkou
Linkou
-Mainland China:*Linkou County , of Mudanjiang, Heilongjiang*Linkou, Linkou County , town and county seat of Linkou County, Heilongjiang*Linkou, Bijie City , town in Guizhou-Taiwan:*Linkou District , rural district of New Taipei...

 branch undertook the first liver transplant operation in Asia.

Naphtha Cracker #6 (六輕)



FPG’s naphtha
Naphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...

 cracker – the sixth petrochemical processing plant of that kind in Taiwan – was first proposed in 1973, but the ruling KMT
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...

 government still imposed a monopoly at that time and denied permission. Permission was granted in 1986, as President
President of the Republic of China
The President of the Republic of China is the head of state and commander-in-chief of the Republic of China . The Republic of China was founded on January 1, 1912, to govern all of China...

 Chiang Ching-kuo
Chiang Ching-kuo
Chiang Ching-kuo , Kuomintang politician and leader, was the son of President Chiang Kai-shek and held numerous posts in the government of the Republic of China...

 instituted reforms to loosen the authoritarianism
Authoritarianism
Authoritarianism is a form of social organization characterized by submission to authority. It is usually opposed to individualism and democracy...

 instituted by his father, Chiang Kai-shek
Chiang Kai-shek
Chiang Kai-shek was a political and military leader of 20th century China. He is known as Jiǎng Jièshí or Jiǎng Zhōngzhèng in Mandarin....

. At that time, FPG proposed a NT$90 billion complex that would be located in the Litzu Industrial Zone of Ilan County. Local residents opposed this plan on the basis of its environmental impact and, led by County Magistrate Chen Ding-Nan (陳定南), formed the Alliance against Sixth Naphtha Cracker. After a successful campaign, including a televised debate between Chen and FPG Chairman Wang, they eventually forced the company to look elsewhere. The second site proposed by FPG, in Taoyuan County’s Kuanyin Industrial Zone, generated similar opposition from local residents.

FPG shelved these proposals in 1989 and Chairman Wang Yung-ching
Wang Yung-ching
Wang Yung-ching was an influential entrepreneur who founded a large business empire in Taiwan. According to the 2008 Forbes survey, he was the 178th richest person in the world with an estimated net worth of US$5.5 billion...

 traveled secretly to mainland China to find a solution there. In 1990, he announced his intention to develop the complex on the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

-controlled island of Haitsang, in Fujian Province. The Nationalist government
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...

 condemned the project and in 1992 secured an offshore site near Mailiao, in Taiwan’s impoverished Yunlin County
Yunlin County
Yunlin County is a county in the western part of Taiwan, the Republic of China. Yunlin is located to the right of the Taiwan Strait, the east of Nantou County and sharing a border with Changhua County divided by the Zhuoshui River. Yunlin is one of the counties of Taiwan that is part of the Chianan...

, where local administrators welcomed the investment.

Total investment in the complex, after four “phases” of construction throughout the 1990’s and early 2000’s, came to NT$650 billion and included the following major features:
  • an oil refinery: 450,000 barrels (72,000 m³) per day
  • a naphtha cracking plant (production capacity: 1.35 million tons ethylene per year)
  • a coal-burning power plant (capacity: 3 GW)
  • Taiwan’s first wind power plant (total combined capacity of the four turbines: 2,640 kW).


This project provoked intense opposition, just as Chiang Ching-kuo's reforms allowed tolerance for public expressions of dissatisfaction. The environmentalists’ public protests, including a 3000-person rally at the Ministry of Economic Affairs in 1990, reflected the island’s gradual transformation from authoritarianism to democracy. Beyond environmental concerns, protesters and newly-legalized opposition parties
Tangwai
The Tangwai movement was a political movement in the Republic of China in the mid-1970s and early 1980s. Although the Kuomintang had allowed contested elections for a small number of seats in Legislative Yuan, opposition parties were still forbidden...

 denounced the cronyism
Cronyism
Cronyism is partiality to long-standing friends, especially by appointing them to positions of authority, regardless of their qualifications. Hence, cronyism is contrary in practice and principle to meritocracy....

 they saw in the expedited approvals, extended tax holiday, subsidized loans, extremely low land prices for the land, and special allowance for a private port.

During the construction of Naphtha Cracker #6, further trouble arose when 200 to 300 Thai and Filipino
Filipino people
The Filipino people or Filipinos are an Austronesian ethnic group native to the islands of the Philippines. There are about 92 million Filipinos in the Philippines, and about 11 million living outside the Philippines ....

 workers fought on 5 September 1999. The brawl was reported to have lasted eight hours. Despite these complications, the plant proceeded as scheduled and continues to enjoy government support.

Constituent firms


The following FPG companies are located in Taiwan:
  • Chang Gung Biotechnology Corp.
  • Formosa Asahi Spandex Co., Ltd.
Company site
  • Formosa Automobile Corp.
Company site
  • Formosa Chemical & Fiber Corp.
Company site
  • Formosa Daikin Advanced Chemicals Co., Ltd.
  • Formosa Heavy Industries Corp.
Company site
  • Formosa Komatsu Silicon Corp.
  • Formosa Petrochemical Corp.
Company site
  • Formosa Plasma Display Corp.
Company site
  • Formosa Plastics Corp.
  • Formosa Plastics Maritime Corp.
  • Formosa Taffeta Corp.
Company site
  • Formosa Technology Corp.
Company site
  • Formosa Teletek Corp.
Company site
  • Formosa Transport Corp.
  • Hwa Ya Power Corp.
  • Inotera Memories Inc.
Company site
  • Mailiao Power Corp.
Company site
  • MIZ Port Management Corp.
  • Nan Ya Plastics Corp.
Company site
  • Nan Ya Printed Circuit Board Corp.
Company site
  • Nan Ya Technology Corp.
Company site
  • PFG Fiber Glass Corp.
Company site
  • Tah Shi Spinning Corp.
  • Weng Fun Industrial Co.
Company site
  • VIA Technologies
    VIA Technologies
    VIA Technologies is a Taiwanese manufacturer of integrated circuits, mainly motherboard chipsets, CPUs, and memory, and is part of the Formosa Plastics Group. It is the world's largest independent manufacturer of motherboard chipsets...



FPG also maintains the following overseas subsidiaries:
  • Formosa Plastics Corp., U.S.A.
Company site
  • Formosa Plastics Marine Corp. (Liberia)
  • Formosa Transrail Corporation (US)
  • JM Eagle (US)
Company site
  • Nan Ya Plastics Corp., America
Company site
  • Nan Ya Plastics Corp., U.S.A.
Company site
  • P.T. Indonesia Nan Ya Indah Plastics Corp.
Company site


The following educational and medical institutions also fall under the FPG umbrella:
  • Chang Gung Institute of Technology
  • Chang Gung Memorial Hospital
Official website
  • Chang Gung University
    Chang Gung University
    Chang Gung University is a private university in Gueishan, Taoyuan, northern Taiwan.- History :The institution was established as the Chang Gung Medical College in April 1987. Engineering and management students have been accepted since 1993, when the name was changed to Chang Gung College of...

Official website
  • Ming Chi Institute of Technology
Official website

External links