Page 17 - 2025 CPC Corporation,Taiwan

Prioritizing quality and environmental compliance In fulfillment of the government’s commitment to relocate industrial facility location, the production at the Kaohsiung Refinery ceased in late 2015. Its crude oil refining activities were transitioned to the Dalin Refinery, which underwent expansion to offset the reduced domestic oil supply resulting from closure and production cutbacks at the Kaohsiung Refinery. The newly constructed refinery boasts a daily capacity of 150,000 barrels for the atmospheric crude oil distillation unit (CDU), 50,000 barrels for the condensate fractionating unit (CFU), 40,000 barrels for the diesel hydro-desulfurization unit (DHDS), and 30,000 barrels for the kerosene hydro-desulfurization unit (KHDS). Operations commenced in 2018, ensuring a secure supply of raw materials essential for the continuity and advancement of downstream petrochemical industries. In addition, the Dalin Refinery increased its crude oil refining capacity from 300,000 to 400,000 barrels per day, and CPC raised its refining capacity to 600,000 barrels per day. Supplementary petrochemical materials were sourced from the New-No.3 Naphtha Cracker in Linyuan and through imports. Given the increasing demand for environmental protection and quality of life from the public, as well as the more diverse needs for in response to increasingly stringent fuel regulations set by the environmental authorities, CPC has been building several refining facilities, such as reforming plants, isomerization plant, gasoline, kerosene, diesel hydrodesulfurization, jet fuel treatment unit, normal paraffin unit, alkylation, residual oil cracking, etc., to further improve production efficiency and provide more eco-friendly, high-quality oil products in response to the Environmental Protection Administration’s announcement to reduce the sulfur content in gasoline and diesel to below 10 ppmw, aromatic content in gasoline to below 35 vol.%, and olefin content to below 18 vol.%. Adhering to the principle of “Customer First, Quality Supreme,” CPC strictly controls oil product quality by setting rigorous internal standards, increasing silver strip corrosion tests, and conducting weekly scheduling meetings to review and ensure that the quality of the oil leaving the refinery meets the regulations. If the quality approaches the lower limit of internal standards, CPC proactively issues warnings to enable the refinery to respond early. Additionally, CPC is gradually establishing laboratory management systems in the oil supply centers, strictly following SOPs for oil sampling, equipment maintenance, and storage operations. Oil tanker filling operations can only proceed after qualified sampling and testing at the fueling ports. The Refining & Manufacturing Research Institute also regularly samples and tests units such as refineries, gas stations, and oil supply centers every month and every three months, respectively, to control and improve oil quality. / Core Business 15