Page 46 - 2021 CPC Corporation,Taiwan

CPC Corporation, Taiwan
CPC's Affiliates and Subsidiaries
CPC concentrates on its core competencies while investing in business diversification
CPC’s joint venture strategy can be summarized as “on the foundation of core business, active expansion into fields of petrochemicals (upstream and downstream), new energy, high value-added petrochemicals and international investments.” The company now sets out to selectively introduce patented technologies that will be incorporated with own feedstock for petrochemicals to deliver high value-added products in order to boost the bottom line. As of 31 December 2020, total investment on the 15 joint venture entities was NT$21.109 billion, generating an unaudited investment income of NT$233 million in 2020 and cash dividends of NT$991 million over the same period.
CPC’s current 15 affiliates can be divided into four main categories: petroleum products, petrochemicals, natural gas and implementation of government policy. Of the 15, 8 are based in Taiwan and 7 overseas. The principal entities are briefly described as below.
CHINA AMERICAN PETROCHEMICAL CO. LTD. (CAPCO)
Established in 1976, CAPCO is the major supplier of purified terephthalic acid (PTA) to Taiwan’s polyester textile industry; its plant is located in the Taichung Harbor in the island’s central region. CPC holds 38.57% of the company’s equity, including preferred stock. CAPCO’s production units carried out improvement programs with the aim of lowering production costs and boosting market competitiveness.
DAI HAI PETROL CORP. (DHP)
Established in 1994, with CPC holding 35% of the equity, DHP is headquartered in Haiphong, Vietnam. It has a branch station in HaTay province. DHP mainly engaged in the storage, transportation and supply and marketing of liquefied petroleum gas in northern Vietnam.
QATAR FUEL ADDITIVES COMPANY LIMITED (QAFAC)
Qatar Fuel Additives Company Limited (QAFAC) was established in 1996, with CPC holding 20% of the equity. Located in Mesaieed Industrial Zone in Qatar, it produces chiefly methanol and methyl tert-butyl ether (MTBE).
CHUN PIN ENTERPRISE CO., LTD. (CPEC)
Chun Pin Enterprise Co. was established in 1998, with CPC holding 49% of the equity, to set up and operate a storage and transportation center as part of the Phase II development of Taipei Harbor. CPEC is engaged in the storage and transshipment of petroleum and petrochemical products and is currently engaged in formulating a plan to move its storage tanks to reclaimed land in the outer harbor of the Port of Taipei.
KUOKUANG POWER CO., LTD. (KKPC)
KuoKuang Power Co. was established in 2000, with CPC holding 45% of the equity, under the government’s policy of opening up power generation to private operators in order to alleviate the power supply shortfall in northern Taiwan. The project entailed construction and operation of a natural gasfired power plant with an installed capacity of 480 MW and located in the Guishan District of Taoyuan City.
NIMIC SHIP HOLDING CO., LTD. (NSHC)
Established in 2006, with CPC holding 45% of the equity, NSHC has four ship-owning companies under
its umbrella. It has built four LNG carriers engaged in transporting LNG from Qatar’s Ras Laffan II. In compliance with IMO’s environmental protection regulations, NSHC has planned and implemented modification for burning low- sulfur fuel oil and installation of ballast water management system for its LNG carriers since 2018.
NIMIC SHIP MANAGEMENT CO., LTD. (NSMC)
Established in 2006, with CPC holding 45% of the company’s equity, NSMC is responsible for the operation and management of the four LNG carriers built by NSHC. In addition to assisting in the implementation of modification for burning low-sulfur fuel oil and installation of ballast water management system for the four LNG carriers in 2018, NSMC also has an ongoing cooperative program with NTOU and NKMU aimed at developing a pool of Taiwanese seafarers.
GLOBAL ENERGY MARITIME CO. (GEMCO)
Established in 2011, with CPC holding 48% of the company’s equity, GEMCO has built three double- hulled VLCCs with a capacity of 300,000 DWT and one double-hulled LR1 vessel with a capacity of 80,000 DWT engaged in shipping crude oil and petroleum products. In compliance with IMO’s environmental protection regulations, GEMCO has completed retrofitting of the scrubber system for VLCCs.
ICHTHYS LNG PTY LTD (ILPL)
Established in 2011, with CPC holding 2.625% of the company’s equity, ILPL pipes natural gas from Australia’s offshore Ichthys field to the onshore gas liquefaction plant near Darwin for the production of LNG, LPG and condensate. First LNG cargo was shipped in November 2018.
MAXIHUB COMPANY LIMITED (MAXIHUB)
Established in 2014, with CPC holding 40% of the equity since 2016, MAXIHUB plans to build a wharf, tank farm and lubricant blending factory in Dong Nai Province, Vietnam. The company was founded to manufacture and process lubricating oils, base oil, and solvent chemicals and also provide the required related storage and warehouse services. Completion of the plant and supporting facilities and the beginning of commercial production are planned for March 2023.