Page 46 - 2022 CPC Corporation,Taiwan

44 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 boost its bottom line by selectively introducing patented technologies to develop high value- added products with their own materials and technologies for petrochemical products. Total investment on these 15 joint venture entities, as of the end of 2021, was NT$21.109 billion, generating an unaudited investment income of NT$773 million in 2021 and cash dividends of NT$1.173 billion 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, eight are based in Taiwan and seven 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 Taiwan’s central region. CPC holds 38.57% of the company’s equity, including preferred stock. CAPCO’s production units have 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. The branch station is located in HaTay province. The company mainly engaged in storage, transportation, 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 the construction and operation of a natural gas-fired 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 the IMO’s environmental protection regulations, NSHC has planned and implemented modifications to burn low-sulfur fuel oil and the installation of a 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 modifications to burn low-sulfur fuel oil and the installation of a 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 a double-hulled LR1 vessel with a capacity of 80,000 DWT, engaged in shipping crude oil and petroleum products. In compliance with the IMO’s environmental protection regulations, GEMCO had 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 an onshore gas liquefaction plant near Darwin for the production of LNG, LPG, and condensate. The 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 a 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 to provide storage and warehouse services. The lubricant blending factory had finished Mechanical Completion on July 19, 2021, and was commissioned on December 18, 2021. CPC’s Affiliates