Formosa Plastics Group
Formosa Plastics Group is a world leader in the production of chemical fibers, plastic materials and petrochemical industrial related products. Headquartered in Taipei, it is the largest private company in Taiwan. The Group includes Formosa Petrochemical Corporation, Formosa Chemicals & Fiber Corporation, plus more than of 20 subsidiaries and partnerships in Indonesia, the United States and China. Under the Formosa Plastics Group umbrella are several institutions of education and medical organizations.
Formosa Plastics Corporation was founded in 1954. Its beginnings were challenging as it struggled with high production costs due to small production volume and lack of sufficient end users for the PVC resins being produced at the time. Its solution was to increase production and to build downstream production facilities that would expend the PVC resins.
In 1958, the company established Nan Ya Plastics Corporation, for the purpose of producing secondary products such as plastic, leather and PVC pipes. New Eastern Corporation was subsequently formed to utilize the products coming out of Nan Ya Plastics and turn them into consumer products such as handbags, shoes, suitcases and other such items suitable for the export market. And so it continued with Formosa Plastics expanding product lines and adding downstream production facilities to ensure market for its products. In 1965, the corporation diversified into the textile industry, establishing Formosa Chemicals & Fiber Corporation. By 1974, Formosa had joined the world’s largest fiber producers. Formosa Petrochemical Corporation was formed in 1992 to manage the construction and operation of the company’s naptha cracking plant, oil refinery and co-generation plant.
Formosa Plastics Group includes more than ten Taiwan holdings, including Nan Ya Technology and Formosa Komatsu Silicon Corporation. Altogether, they are involved in businesses as diverse as electronics, oil refinery, textiles, petrochemicals, plastics—raw materials and secondary, and transportation.
The group’ foray into the United States began in 1978. Today, Formosa owns several petrochemical plants, as well as natural gas wells, operating under: Formosa Plastics Corporation America, Formosa Plastics Corporation, USA, and Nan Ya Plastics Corporation, America.
In 2015, Formosa announced its plans to construct a new, state-of-the art polypropylene production line at its Point Comfort, Texas plant. Officials hope this may be the beginning of a trend to increase polypropylene capacity in the United States. According to officials at the Livingston, New Jersey plant, this represents the first new construction of a polypropylene production line in America in a very long time. Currently, engineering design is being finalized and permit applications readied. The production line is expected to open in 2017. It will be the first in Point Comfort, where there is already a PVC production unit and two ethylene crackers on site.
Formosa Plastics Group founded the Nan Ya Environmental Engineering Center, to steer its system-wide understanding of and adherence to environmental regulations. The Center is also developing state-of-the art environmental protection models and pollution control equipment to ensure full compliance at all manufacturing facilities.
At a time when there was a severe shortage of medical facilities in Taiwan, in the late 70s, Formosa Plastics constructed five medical clinics across the island to provide more beds and treatment clinics. Formosa’s involvement in increasing medical infrastructure has continued to the present day, including special emphasis on funding the development of alternative medicine outreach, medical care for the indigent, genetic engineering and elderly care.