Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. It also sells electricity, steam and certain other products generated from its co-generation power plants. Formosa Petrochemical is the only privately owned oil refinery in Taiwan and the second largest gasoline and gasoil producer in Taiwan. Its refined petroleum products are both sold domestically and overseas. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Excess electricity generated from Formosa Petrochemical's co-generation power plants is sold to other companies located within the No. 6 Naphtha Cracker Complex and to Taiwan Power Company.
Formosa Petrochemical's principal refined petroleum products include gasoline, gasoil, naphtha, fuel oil (including pyrolysis fuel oil), jet fuel / kerosene and liquefied petroleum gas ("LPG"). As of March 31, 2004, Formosa Petrochemical's oil refinery consisted of three crude oil distillation units ("CDUs") with a combined nameplate processing capacity of 450,000 barrels of crude oil per day (or 21 million MTY based on 333 days a year). As of March 31, 2004, Formosa Petrochemical sold all of these products, known generally as refined petroleum products, primarily to wholesale buyers both domestically and overseas. Some of these products are then sold to the retail market through gasoline service stations. Some of these products are then sold to the retail market through gasoline service stations, including those owned by Formosa Petrochemical's direct subsidiary, Formosa Oil, its indirect subsidiary, Whale Home International, and its affiliate Formosa Taffeta as well as franchise gasoline service stations owned by unrelated third parties. Refined petroleum products are produced in Formosa Petrochemical's oil refinery located within the No. 6 Naphtha Cracker Complex.
Formosa Petrochemical's principal olefins products include ethylene, propylene, BTX and butadiene. Formosa Petrochemical currently operates two naphtha crackers in the No. 6 Naphtha Cracker Complex, with a combined ethylene nameplate capacity of 1.6 million MTY. Almost all of Formosa Petrochemical's ethylene, propylene and BTX production is sold to companies within the Formosa Group for further downstream processing.
The principal products of Formosa Petrochemical's utilities division are electricity and steam. Formosa Petrochemical currently operates three co-generation power plants, all of which are coal-fired, with a combined installed capacity of 1,820 MW.
In addition to its three operating business divisions. Formosa Petrochemical also has an engineering division and a maintenance division. Formosa Petrochemical's engineering division typically carries out planning, engineering and construction tasks. Its maintenance division provides day-to-day maintenance services for Formosa Petrochemical's existing facilities.
As at March 31, 2004, Formosa Petrochemical employed 3,241 employees, of which 1,198 were employed in its refinery division, 284 were employed in its olefins division and 286 were employed in its utilities division.
Formosa Petrochemical's registered address is 1-1, Formosa Plastic Group Industrial Zone, Mailiao, Yun Lin County, Taiwan.
Formosa Petrochemical was incorporated in April 6, 1992 as a company organized under the laws of the ROC. Formosa Petrochemical's initial shareholders were Formosa Plastics, Nan Ya Plastics, Formosa Chemicals & Fibre and Formosa Taffeta, which certain other entities in the Formosa Group and certain employees of Formosa Petrochemical holding the remainder. The shareholdings of the initial shareholders were sold down, when 179,500,000 Common Shares were offered to the public in Taiwan and the Common Shares were listed on the TSE and offered to the public in Taiwan on December 26, 2003.