Page 19 - 2025 CPC Corporation,Taiwan

CPC in Petrochemicals The main CPC petrochemical production base is the Linyuan Petrochemical Plant, running by the Petrochemical Business Division. It includes the naphtha cracker and the butadiene extraction units, producing ethylene, propylene, and butadiene products. The aromatics extraction units produce benzene, toluene, and mixed xylene. Additionally, the RFCC units in the Taoyuan and Dalin refineries operating under the Refining Business Division, can produce propylene products. The annual production capacities for CPC’s basic petrochemical raw materials are 1.07 million metric tons of ethylene, 1.194 million metric tons of propylene, 158 thousand metric tons (kTA)of butadiene, 274 kTA of benzene, 321 kTA of toluene and 507 kTA of mixed xylene. CPC continues to invest in the petrochemical business, aiming not only to enhance production capacity but also to diversify product range. For instance, the New No.3 Naphtha Cracker project, initiated in 2005 with an investment of over NT$40 billion, has started to produce ethylene that meets specific standards in 2013, with an annual production capacity of 720,000 tons. In addition to supplying downstream businesses in Linyuan Industrial Park, it also provides petrochemical raw materials to Renda Industrial Park, whose supply was initially provided by the No.5 Naphtha Cracker, creating an annual economic benefit of nearly NT$100 billion. Industrial upgrading through refining transformation To support the energy transition strategy, CPC is advancing the "Industrial Upgrading and Transformation Project" in recent years. This involves replacing an outdated ethylene plant with a new one that has an annual production capacity of one million metric tons, thereby converting surplus oils into petrochemical products, and making up for the shortage of domestic petrochemical basic raw materials. CPC aims to create smart, clean, low-carbon, and environmentally friendly production plant. Its objective is to enhance the resilience of CPC’s supply chain across Taiwan, drive high-valued production for downstream industries, connect semiconductor, ICT, green energy, and medical sectors, and introduce innovative processes and 5G AIoT technology. With approval by the Executive Yuan on 13th May 2024, the total investment is estimated to be NT$106.2 billion. Strategy for optimizing refining operation and converting fuel into high-value materials CPC actively aligns the government’s Circular Economy Policy by implementing the premium oil strategy to drive domestic high-value petrochemical products. The project involves upgrading by-products, previously used as fuel or considered industrial waste, into high-value products. For example, heavy oil residues are being converted into specialty carbon and lithium battery anode materials, with applications in energy storage, composite materials, and green products. Pyrolysis gasoline is being purified into high-purity specialty feedstocks for use in high-end products, such as wind turbine blade composites, electronic components, optical lenses, and automotive waterproof seals. Meanwhile, CPC is evaluating CCU technologies to refine CO2 from flue gas and convert it into chemical feedstocks - reinforcing CPC’s commitment to both the circular economy and emissions reduction. / Core Business 17