Page 28 - 2022 CPC Corporation,Taiwan

Downstream Operations Other Products Liquefied petroleum gas—taking advantage of our strengths and accomplishing the mission of stable supply CPC’s long-standing monopoly in the LPG market was broken when the government opened it up to competition in 1999. Formosa Petrochemical Corp. began competing with CPC as a producer and importer. In response to market competition, CPC has maintained its leading market share in the household gas market by making full use of its quality advantages, north-south transport, storage systems, comprehensive marketing, retail network, full grasp of international market price fluctuations and reductions in procurement costs. In selling industrial gas, the company aims to raise the quality of its customer service and to promote the value of its products so as to both retain existing customers and win new ones. As a state-owned enterprise, CPC undertook its mission of implementing LPG price levels set by government when there were price hikes during the COVID-19 pandemic in 2021, in order to reduce their impact to domestic industry and economy. Meanwhile, CPC has complied with the government’s LPG safety reserve policy to increase storage tank turnover rate and revenue. At the same time, it endeavors to reinforce both occupational safety and environmental protection protocols as part of its mission to stabilize LPG supply in the domestic market and deliver operational performance. CPC LUBRICANTS: expanding business territory and multiple international certifications CPC’s Lubricants Business Division (LBD) was founded on March 16, 1999. CPC is now the leader in Taiwan’s lubricants market with two brands: CPCLUBE (“a brand with mission”), Mirage (“professional automotive lubricants”) and it sells its products to both domestic and overseas consumers. In terms of the domestic market, the LBD now has over 30 distributors and sells its products at over 600 domestic gas stations directly operated by CPC and leading hypermarket chains, providing comprehensive, convenient and diversified after-sales support. In addition to cultivating its domestic market, the LBD is also vigorously expanding in the Asia-Pacific region: China, Philippines, Indonesia, Vietnam, Myanmar, India, Thailand, Australia, Congo and Surinam all have distribution outlets and direct customers. To circumvent the ASEAN tariff barrier to non-members, CPC has worked with a domestic warehousing company to set up Maxihub Corporation in Vietnam’s Tong-Nai Province as a joint-venture. This company will specifically operate facilities for receiving and warehousing of petrochemicals, and lubricant blending, and it is projected to begin operating in 2022. With the gradual rise of electric vehicles and the shrinking of the automotive lubricants market, marine engine oil has become an important direction of future development for LBD. In the past few years, the certification team has obtained over 60 important international certifications, including MAN ES, WinGD, Wartsila, YANMAR, J-EN, MTU, Bosch Rexroth, Parker Denison, etc. In 2019, 2020, and 2021, CPC’s lubricant products were not only awarded the National Brand Yushan Award for Best Product, but they also won the Reader’s Digest “Reputable Brand” gold award in the lubricant category for three consecutive years. It shows that LBD is seen as a trustworthy brand by the general public.