Page 46 - 2024 CPC Corporation,Taiwan

● CPC’sAffiliates
Exploring New Blue Oceans,
Committed to Profit Enhancement
CPC’s Affiliates
CPC’s joint venture strategy is: “on the foundation of the
core business, active expansion into fields of petrochemicals (upstream and downstream), new energy, high value-added petrochemicals, and international investments.” The company aims to boost its bottom line by selectively introducing patented technologies to develop high value-added products with its own materials and technologies for petrochemical products. Total investment in these 15 joint venture entities, as of the end of 2023, was NT$21.109 billion, generating an unaudited investment income of NT$1.28 billion in 2023 and cash dividends of NT$1.588 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 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 PETRO 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 is primarily 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, 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. NSHC owns four LNG carriers engaged in transporting LNG from QatarEnergy LNG S(2). The four LNG carries have adopted low-sulfur fuel oil and ballast water management, according to the International Maritime Organization’s (IMO) regulations and conventions.
NIMIC SHIP MANAGEMENT CO., LTD. (NSMC)
Established in 2006, with CPC holding 45% of the equity, NSMC is responsible for the operation and management of the four LNG carriers owned by NSHC. NSMC has facilitated the implementation of modification enabling the four LNG carries to adopt low-sulfur fuel oil and ballast water management system according to IMO’s regulations and conventions. Moreover, it has an ongoing cooperative program with NTOU and NKMU since 2010, aiming at developing a big pool of Taiwanese seafarers.
GLOBAL ENERGY MARITIME CO. (GEMCO)
Established in 2011, with CPC holding 48% of the equity, GEMCO has built three double-hulled VLCCs with a capacity of 300,000 deadweight tons (DWT) and a double-hulled LR1 vessel with an 80,000 DWT capacity engaged in shipping crude oil and petroleum products. In compliance with the IMO’s environmental protection regulations, GEMCO has retrofitted the scrubber system for the VLCCs.
ICHTHYS LNG PTY LTD (ILPL)
Established in 2011, with CPC holding 2.625% of the 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. Commercial production began 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, solvent chemicals and also to provide the required related storage and warehouse services. The lubricant blending factory has finished Mechanical Completion on July 19, 2021, completed commissioning on December 18, 2021, and started trial operation in January 2022.
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