MIRA
INFORM REPORT
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Report Date : |
22.06.2013 |
IDENTIFICATION DETAILS
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Name : |
FORMOSA CHEMICALS & FIBRE
CORPORATION |
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Registered Office : |
No. 359, Section 3, Jhongshan Road, Chung Chuang Li, Changhua, 500 |
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Country : |
Taiwan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.03.1965 |
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Legal Form : |
Public Subsidiary Company |
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Line of Business : |
manufacturer and sale of petrochemical plastic raw
materials and man-made fiber products |
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No. of Employees : |
18585 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Taiwan |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Taiwan ECONOMIC OVERVIEW
Taiwan has a dynamic capitalist
economy with gradually decreasing government guidance of investment and foreign
trade. Exports, led by electronics, machinery, and petrochemicals have provided
the primary impetus for economic development. This heavy dependence on exports
exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP
contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In
2010 GDP grew 10.7%, as exports returned to the level of previous years, and in
2011, grew 4.1%. In 2012, however, growth fell to 1.3%, because of softening
global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging
population are major long-term challenges. Free trade agreements have
proliferated in East Asia over the past several years, but except for the
landmark Economic Cooperation Framework Agreement (ECFA) signed with China in
June 2010, so far Taiwan has been excluded from this greater economic
integration in part because of its diplomatic status. Negotiations continue on
such follow-on components of ECFA regarding trade in goods and services. The MA
administration has said that the ECFA will serve as a stepping stone toward
trade pacts with other key trade partners, which Taiwan subsequently launched
with Singapore and New Zealand. Taiwan's Total Fertility rate of just over one
child per woman is among the lowest in the world, raising the prospect of
future labor shortages, falling domestic demand, and declining tax revenues.
Taiwan's population is aging quickly, with the number of people over 65
accounting for 11.2% of the island's total population as of 2012. The island
runs a large trade surplus largely because of its surplus with China, and its
foreign reserves are the world's fifth largest, behind China, Japan, Saudi
Arabia, and Russia. In 2006 China overtook the US to become Taiwan's
second-largest source of imports after Japan. China is also the island's number
one destination for foreign direct investment. Three financial memorandums of
understanding, covering banking, securities, and insurance, took effect in
mid-January 2010, opening the island to greater investments from the mainland's
financial firms and institutional investors, and providing new opportunities
for Taiwan financial firms to operate in China. In August 2012, Taiwan Central
Bank signed a memorandum of understanding on cross-Strait currency settlement
with its Chinese counterpart. The MOU allows for the direct settlement of
Chinese RMB and the New Taiwan dollar across the Strait, which could help develop
Taiwan into a local RMB hub. Closer economic links with the mainland bring
greater opportunities for the Taiwan economy, but also poses new challenges as
the island becomes more economically dependent on China while political
differences remain unresolved.
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Source : CIA |
Company name & address
Formosa Chemicals & Fibre Corporation
No. 359, Section 3
Jhongshan Road, Chung Chuang Li
Changhua, 500
Taiwan
Tel: 886-2-27122211
Fax: 886-2-27133229
Web: www.fcfc.com.tw
Operating Address
201 Tung Hwa North Road Taipei, Taiwan
Synthesis
Employees: 18,585
Company Type: Public Subsidiary
Corporate Family: 13
Companies
Ultimate Parent: Formosa Petrochemical Corporation
Traded: Taiwan Stock Exchange: 1326
Incorporation Date:
05-Mar-1965
Auditor: PricewaterhouseCoopers LLP
Financials in: USD
(Millions)
Fiscal Year End:
31-Dec-2012
Reporting Currency:
Taiwanese New Dollar
Annual Sales: 13,238.8 1
Net Income: 239.8
Total Assets: 16,790.9 2
Market Value: 13,467.3 (07-Jun-2013)
Business Description
Formosa Chemicals & Fibre Corporation is principally engaged in the
manufacture and sale of petrochemical plastic raw materials and man-made fiber
products. The Company’s petrochemical products include benzene, paraxylene
(PX), o-xylene (OX), toluene, styrene monomer (SM), phenol, acetone, pure
terephthalic acid (PTA), polystyrene (PS), acrylonitrile, butadiene,
acrylonitrile butadiene styrene (ABS), polypropylene (PP) and polycarbonate
resin (PC). Its man-made fiber products include rayon, mirabilite, synthetic
fiber yarn, cotton yarn, blended yarn, staple fiber cloth, long-fiber cloth,
nylon resins, nylon raw yarn and nylon textured yarn, among others. It also
provides electricity, filtered water, chilled water, soft water, pure water and
steam. The Company distributes its products in domestic market and to overseas
markets. For the three months ended 31 March 2013, Formosa Chemicals &
Fibre Corporation revenues increased less than 1% to NT$105.12B. Net income
increased from NT$3.4B to NT$8.1B. Revenues reflect Other Operating Income
increase of 46% to NT$162M, also reflect Service Revenue decrease of 68% to
NT$42.3M. Net income benefited from Gain/Loss on Equity Investment increase of
91% to NT$2.45B (income), Interest Income increase of 24% to NT$124.1M (income).
Industry
Industry Chemical Manufacturing
ANZSIC 2006: 1812 - Basic
Organic Chemical Manufacturing
NACE 2002: 2414 - Manufacture
of other organic basic chemicals
NAICS 2002: 325199 - All Other
Basic Organic Chemical Manufacturing
UK SIC 2003: 2414 - Manufacture
of other organic basic chemicals
UK SIC 2007: 2014 - Manufacture
of other organic basic chemicals
US SIC 1987: 2869 - Industrial
Organic Chemicals, Not Elsewhere Classified
Key Executives
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Name |
Title |
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Ruilong Chen |
Managing Director, Independent Director |
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Zhengjie Yang |
Head of Finance |
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Zhaolin Yang |
Managing Director |
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Wenyuan Wang |
Chairman of the Board |
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Sunru Li |
Director |
Significant Developments
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* number of significant developments within the last 12 months
Financial Summary
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Stock Snapshot
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1 - Profit & Loss Item Exchange Rate: USD 1 = TWD 29.57962
2 - Balance Sheet Item Exchange Rate: USD 1 = TWD 29.012
Corporate Overview
Location
No. 359, Section 3
Jhongshan Road, Chung Chuang Li
Changhua, 500
Taiwan
Tel: 886-2-27122211
Fax: 886-2-27133229
Web: www.fcfc.com.tw
Quote Symbol - Exchange
1326 - Taiwan
Stock Exchange
Sales TWD(mil): 391,600.0
Assets TWD(mil): 487,138.1
Employees: 18,585
Fiscal Year End: 31-Dec-2012
Industry: Chemical Manufacturing
Incorporation Date: 05-Mar-1965
Company Type: Public Subsidiary
Quoted Status: Quoted
Chairman of the Board: Wenyuan
Wang
Industry Codes
ANZSIC 2006 Codes:
1812 - Basic Organic Chemical Manufacturing
2811 - Water Supply
1821 - Synthetic Resin and Synthetic Rubber Manufacturing
1829 - Other Basic Polymer Manufacturing
NACE 2002 Codes:
2414 - Manufacture of other organic basic chemicals
2416 - Manufacture of plastics in primary forms
4100 - Collection, purification and distribution of water
4030 - Steam and hot water supply
2470 - Manufacture of man-made fibres
NAICS 2002 Codes:
325199 - All Other Basic Organic Chemical Manufacturing
325211 - Plastics Material and Resin Manufacturing
221330 - Steam and Air-Conditioning Supply
325221 - Cellulosic Organic Fiber Manufacturing
221310 - Water Supply and Irrigation Systems
325222 - Noncellulosic Organic Fiber Manufacturing
US SIC 1987:
2869 - Industrial Organic Chemicals, Not Elsewhere Classified
4941 - Water Supply
2824 - Manmade Organic Fibers, Except Cellulosic
4961 - Steam and Air-Conditioning Supply
2821 - Plastics Materials, Synthetic Resins, and Nonvulcanizable
Elastomers
2823 - Cellulosic Manmade Fibers
UK SIC 2003:
2414 - Manufacture of other organic basic chemicals
2470 - Manufacture of man-made fibres
2416 - Manufacture of plastics in primary forms
4100 - Collection, purification and distribution of water
4030 - Steam and hot water supply
UK SIC 2007:
2014 - Manufacture of other organic basic chemicals
3530 - Steam and air conditioning supply
2060 - Manufacture of man-made fibres
2016 - Manufacture of plastics in primary forms
3600 - Water collection, treatment and supply
Business
Description
Formosa Chemicals
& Fibre Corporation is principally engaged in the manufacture and sale of
petrochemical plastic raw materials and man-made fiber products. The
Company’s petrochemical products include benzene, paraxylene (PX), o-xylene
(OX), toluene, styrene monomer (SM), phenol, acetone, pure terephthalic acid
(PTA), polystyrene (PS), acrylonitrile, butadiene, acrylonitrile butadiene
styrene (ABS), polypropylene (PP) and polycarbonate resin (PC). Its man-made
fiber products include rayon, mirabilite, synthetic fiber yarn, cotton yarn,
blended yarn, staple fiber cloth, long-fiber cloth, nylon resins, nylon raw
yarn and nylon textured yarn, among others. It also provides electricity,
filtered water, chilled water, soft water, pure water and steam. The Company distributes
its products in domestic market and to overseas markets. For the three months
ended 31 March 2013, Formosa Chemicals & Fibre Corporation revenues
increased less than 1% to NT$105.12B. Net income increased from NT$3.4B to
NT$8.1B. Revenues reflect Other Operating Income increase of 46% to NT$162M,
also reflect Service Revenue decrease of 68% to NT$42.3M. Net income benefited
from Gain/Loss on Equity Investment increase of 91% to NT$2.45B (income),
Interest Income increase of 24% to NT$124.1M (income).
More Business
Descriptions
Manufacture of
nylon and rayon products and plastic raw materials including ABS, PS, PTA and
aromatics
Chemicals,
Petrochemicals, Fibers & Plastics Mfr
Formosa Chemicals
& Fibre Corporation (FCFC) carries out the production and sale of
petrochemical products. The product portfolio of the company includes styrene
momoner (SM), benzene, SM polymer, purified terephthalic acid (PTA),
polystyrene (PS), butadiene, p-xylene (PX) and o-xylene (OX), toluene, nylon
fiber and rayon staple fiber. FCFC is also involved in spinning, weaving,
dyeing and finishing. FCFC operates as a subsidiary of Formosa Plastics Group.
The company’s business operations are classified into eight divisions,
namely, First Petrochemical, Second Petrochemical, Third Petrochemical,
Plastics, Rayon, Textiles, Nylon and Engineering.The company’s First
Petrochemical division of the company manufactures and sells aroma. Through
this division, the company supplies downstream operations within the Formosa
Plastics Group. It manufactures benzene, which is widely used in the
manufacture of plastics, pesticides, detergents and other chemicals. The
company provides the synthesis of terephthalic acid for polyester resins and
fibers, vitamin and pharmaceutical syntheses and insecticides. The division is
also involved in the manufacture of synthetic dyes, pharmaceuticals, phthalic
anhydride, insecticides and solvents. The Second Petrochemical division of the
company manufactures and sells phenol, and acetone. SM is principally supplied
to PS and ABS Plants. The division supplies phenol to BPA plants and acetone to
BPA, epoxy and MMA plants. The acetone chemicals produced by the company are
used in paint, varnish and lacquer solvent industries.The company’s Third
Chemical division manufactures and sells PTA (purified terephthalic acid) and
DMF (dimethyl formamide). The Plastic division manufactures and sells
polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile
(SAN) and polypropylene (PP) product lines. These products are widely used in
helmets, shoe heels, pipe fittings, clock housing, stereo housing, suitcase,
plates, piano black mirror products, calculators, stereos, plates, LCD-TV
housing, and refrigerators. The company caters these products to plastic
manufacturers. The Rayon division of the company carries out the production of
rayon staple fiber. It is involved in the production of rayon staple fiber with
different performance standards such as regular rayon, tenacity rayon, dope
dyed rayon, flame retardant rayon, high wet modulus rayon, fine denier, and
anti-bacteria rayon. It also provides carbon disulfide, sulphuric acid and
anhydrous sodium sulphate.The Nylon division offers a range of man-made fiber
materials for weaving and apparel industries. It produces nylon yarn, nylon
chips and textured yarn for clothing materials. These products are widely used
in bedroom fabrics, pantyhose, socks, light-weighted outer garment, down
overcoat, underwear, luggage, conveyer, fishing net, tent, engineering plastics
and packing film. FCFC’s Textiles division produces and sells spun yarn, spun
fabric and filament fabric. The Engineering business division of the company
produces power, soft water, filter water, steam, pure water, refrigerant, and
compressed air. It is involved in the expansion and improvement projects. It
carries out the engineering planning, design, budget planning, and construction
supervision for various electrical, mechanical and construction projects. The
division has three plants, namely, Changhwa Plant, Longte Plant and Hsin Kang
Plant.
Formosa Chemicals
& Fibre Corporation (FCFC) is a petrochemical manufacturing company. It is
a subsidiary of Formosa Plastics Group. The company manufactures and sells
petrochemical products, rayon stable fiber and nylon fiber. It also produces
and sells compounds for the production of aromas and its downstream
petrochemical materials such as styrene monomer, acetone, phenol, purified
terephthalic acid and dimethyl formamide. These products find application in
paint, helmets, clock housing, stereos, shoe heels, engineering plastics,
refrigerators, pipe fittings, stereo housing, suitcase, plates, bedroom fabrics
and outer garments. The company has manufacturing facilities in Changhwa, Hsin
Kang, Ilan, Dongshan, Chiayi Hsin Kang, Yunlin Mailiao, Lung Der, Mai Liao and
Kung San. FCFC is headquartered in Taipei, Taiwan.The company reported revenues
of (Taiwanese Dollars) TWD 396,133.60 million during the fiscal year ended
December 2011, an increase of 3.25% over 2010. The operating profit of the
company was TWD 25,648.12 million during the fiscal year 2011, a decrease of
37.39% from 2010. The net profit of the company was TWD 32,970.86 million
during the fiscal year 2011, a decrease of 30.26% from 2010.
Artificial and
Synthetic Fibers and Filaments Manufacturing
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Corporate Family |
Corporate
Structure News: |
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Formosa
Petrochemical Corporation |
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Formosa Chemicals & Fibre Corporation |
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Company
Name |
Company
Type |
Location |
Country |
Industry |
Sales |
Employees |
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Parent |
Mailiao |
Taiwan |
Oil and Gas Operations |
30,237.5 |
6,507 |
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Affiliates |
Changhua |
Taiwan |
Chemical Manufacturing |
13,238.8 |
18,585 |
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Subsidiary |
Douliou |
Taiwan |
Textiles - Non Apparel |
1,700.1 |
9,563 |
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Subsidiary |
Douliou |
Taiwan |
Semiconductors |
360.2 |
2,499 |
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Subsidiary |
Dong Nai |
Viet Nam |
Apparel and Accessories |
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500 |
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Subsidiary |
Taipei City, Taipei |
Taiwan |
Textiles - Non Apparel |
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50 |
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Subsidiary |
Taipei |
Taiwan |
Biotechnology and Drugs |
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Subsidiary |
Taipei City, Taipei |
Taiwan |
Electronic Instruments and Controls |
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121 |
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Subsidiary |
Huyen Nhon Trach, Dong Nai Province |
Viet Nam |
Apparel and Accessories |
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Subsidiary |
Taipei |
Taiwan |
Oil and Gas Operations |
566.1 |
1,600 |
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Subsidiary |
Yun-lin |
Taiwan |
Miscellaneous Transportation |
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33 |
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Subsidiary |
Yun-lin |
Taiwan |
Construction - Supplies and Fixtures |
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Subsidiary |
Taipei |
Taiwan |
Construction Services |
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Competitors Report
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Company
Name |
Location |
Employees |
Ownership |
|
Arkema Inc. |
Philadelphia, Pennsylvania,
United States |
2,400 |
Private |
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China Petrochemical
Development Corp. |
Taipei, Taiwan |
1,301 |
Public |
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Cytec Industries Inc |
Woodland Park, New Jersey,
United States |
6,600 |
Public |
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Eternal Chemical Co. Ltd. |
Kaohsiung, Taiwan |
4,404 |
Public |
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ExxonMobil Chemical Company |
Houston, Texas, United States |
14,000 |
Private |
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FMC Corp |
Philadelphia, Pennsylvania,
United States |
5,700 |
Public |
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Grand Pacific Petrochemical
Corp. |
Taipei, Taiwan |
379 |
Public |
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Hercules Incorporated |
Wilmington, Delaware, United
States |
4,660 |
Private |
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Lee Chang Yung Chemical
Industry Corp |
Taipei, Taiwan |
1,746 |
Public |
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Lubrizol Advanced Materials,
Inc. |
Cleveland, Ohio, United States |
2,500 |
Private |
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Sigma-Aldrich Corporation |
St. Louis, Missouri, United
States |
9,000 |
Public |
|
Taiwan Styrene Monomer
Corporation |
Taipei, Taiwan |
2,291 |
Public |
|
UPC Technology Corporation |
Taipei, Taiwan |
1,381 |
Public |
Executive report
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Board of
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Executives |
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Deputy General Manager |
Division Head Executive |
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Executive Deputy General Manager, Director |
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Deputy General Manager, Director |
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General Manager, Director |
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Senior Deputy General Manager, Director |
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Deputy General Manager |
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Senior Deputy General Manager, Director |
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Deputy General Manager |
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Managing Director, Independent Director |
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Managing Director, Independent Director |
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Head of Finance |
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Significant Developments
Formosa Chemicals & Fibre Corp Announces Investment in Taiwan-based
Company Jun 17, 2013
Formosa Chemicals & Fibre Corp announced that it has invested NTD 3,000,000,000 in a Taiwan-based company during the period from May 7, 2013 to June 17, 2013. As a result, the Company now holds a 25% in the Taiwan-based company, up from 0%.
Formosa Chemicals & Fibre Corp Announces FY 2012 Dividend Payment May 07, 2013
Formosa Chemicals & Fibre Corp announced that it will pay cash dividends of NTD 3,698,806,891 (NTD 0.65 per share), and use undistributed profits to distribute 170,714,163 new shares, at a ratio of 30 new shares for every 1,000 shares and with a face value of NTD 10 per share, to shareholders as stock dividend worth NTD 1,707,141,630, for the fiscal year 2012.
Formosa Chemicals & Fibre Corp Announces FY 2012 Dividend Payment Mar 26, 2013
Formosa Chemicals & Fibre Corp announced that it will pay a cash dividend of NTD 0.65 per share, or NTD 3,698,806,883 in total to shareholders for fiscal year 2012.
Formosa Chemicals & Fibre Corp Receives Fine Oct 18, 2012
Formosa Chemicals & Fibre Corporation announced that it was imposed
a fine of NTD 0.1 million, due to its violation of Air Pollution Control Act.
Formosa Chemicals & Fibre Corp Receives Fine Oct 12, 2012
Formosa Chemicals & Fibre Corporation announced that it was imposed
a fine of NTD 0.6 million, due to its violation of Air Pollution Control Act.
Formosa Chemicals & Fibre Corp to Issues Unsecured Corporate Bonds Aug
30, 2012
Formosa Chemicals & Fibre Corp announced that it will issue NTD
16,000 million worth of unsecured corporate bonds, each with par value of NTD 1
million, and a term of ten years.