View source for Formosa Plastics Corp

{{short description|Taiwanese plastics company}}
{{Use dmy dates|date = May 2020}}
{{Infobox company
| name             =  Formosa Plastics Corporation
| logo             =  Formosa Plastics Corporation - Logo.svg
|native_name = 台灣塑膠公司
|native_name_lang = zh
| romanized_name = Táiwān sùjiāo gōngsī
| type             = [[Public company|Public]]
| traded_as        = {{TSE|1301}}
| foundation       = {{start date and age|1954}}
| location         = Kaohsiung City, Taiwan
| key_people       = Lee Chih-tsuen (李志村)<br /><small>([[President (corporate title)|President]])</small>
| products         = PVC (Polyvinyl Chloride) resins, high density polyethylene, tairylan acrylic fiber, acrylic acid and ester, carbon fiber, caustic soda, PVC modifier, calcium carbonate
| industry         = [[Chemicals]]
| assets           = {{decrease}} {{US$|link=yes}}16.3 billion
| num_employees    = 10,000
| homepage          = {{URL|http://www.fpc.com.tw|www.fpc.com.tw}}
{{URL|http://www.fpcusa.com|www.fpcusa.com}}
}}
[[File:Formosa Plastics Plant Aerial (50887188901).jpg|thumb|right|Aerial view of a Formosa Plastics plant in [[Baton Rouge, Louisiana]]]]
[[File:Formosa Plastics plant near Illiopolis Illinois.jpg|thumb|A Formosa Plastics plant near [[Illiopolis, Illinois]]. It closed after exploding on 23 April 2004, killing five employees.[https://web.archive.org/web/20071026070131/http://www.csb.gov/completed_investigations/docs/FormosaPlasticsIlliopolisReport.pdf] ]]
'''Formosa Plastics Corporation''' ({{zh|t=台灣塑膠公司|l=Taiwan Plastics Company}}) is a Taiwanese [[plastics company]] based in [[Taiwan]] (formerly called "Formosa") that primarily produces [[polyvinyl chloride]] (PVC) resins and other intermediate plastic products. It is the corporation around which influential businessman [[Wang Yung-ching]] formed the '''[[Formosa Plastics Group]]''', and it remains central to the Group's petrochemical operations. The president of Formosa Plastics Corp. (FPC) is Jason Lin (林健男).

In 2019, ''[[Chemical & Engineering News]]'' ranked Formosa Plastics as the world's sixth largest chemical company by sales in 2018, with US$36.9 billion.<ref>{{Cite web|title=C&EN's Global Top 50 chemical companies of 2018|url=https://cen.acs.org/business/finance/CENs-Global-Top-50-chemical/97/i30|last=Tullo|first=Alexander H.|date=July 29, 2019|website=Chemical & Engineering News}}</ref> That same year, [[Forbes]] ranked the company as No. 758 on its [[Forbes Global 2000|Global 2000]] list of the world's largest public companies.<ref>{{Cite web|title=Formosa Plastics|url=https://www.forbes.com/companies/formosa-plastics/?list=global2000#35e336351b15|date=May 15, 2019|website=Forbes}}</ref>  Formosa has received substantial criticism over widespread pollution and reprisal tactics against environmental activists.<ref>{{Cite web|title=Louisiana Activists Face 15 Years for "Terrorizing" Oil Lobbyist with Box of Plastic Pollution|url=https://www.democracynow.org/2020/6/29/louisiana_formosa_plastics_cancer_alley|access-date=2020-06-30|website=Democracy Now!|language=en}}</ref><ref>{{Cite web|title=From Louisiana to Taiwan, environmental activists stand up to a major plastics company|url=https://www.pri.org/stories/2020-07-09/louisiana-taiwan-environmental-activists-stand-major-plastics-company|access-date=2020-08-03|website=The World from PRX|language=en}}</ref>

== History ==
The company was founded in 1954, by [[Wang Yung-ching]] and [[Wang Yung-tsai]] with a US$798,000 [[Taiwan–United States relations|loan from United States aid agencies]]. The first PVC plant was constructed in [[Kaohsiung]] and production began in 1957. As of 2005, FPC is the largest producer of PVC resins in Taiwan. When FPC's American operations are also considered, the company's total PVC resin capacity is 2.83 million metric tons per year, the second highest in the world after [[Shin-Etsu Chemical]], which has 3.55 million metric tons per year as of May 2010 (expanding to 3.85 million metric tons per year by the end of 2010).

FPC maintains numerous subsidiaries throughout Taiwan, jointly held with other members of the Formosa Plastics Group. In addition, Formosa Plastics Corporation, USA was founded in 1978 as a wholly owned subsidiary of FPC.<ref>{{Cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=1993575|title=Formosa Plastics Corporation, U.S.A.: Private Company Information – Bloomberg|website=www.bloomberg.com|access-date=2017-07-27}}</ref> That subsidiary has, in turn, created four wholly owned chemical manufacturing subsidiaries in [[Delaware City, Delaware]], [[Illiopolis, Illinois]], [[Baton Rouge, Louisiana]], and [[Point Comfort, Texas]].

Formosa Plastics Corporation's operations include chemical and petrochemical manufacturing. In 1994, Formosa formed the Formosa Transrail to operate a rail fleet.

=== Recent updates ===

==== St James Parish, Louisiana ====
In April 2018, Formosa Plastics and sister corporation Formosa Petrochemical Corporation announced a new US$9.4 billion chemical manufacturing complex, set to be located across a 2,400-acre site in [[St. James Parish, Louisiana]]. Branded as "The Sunshine Project," the complex, made up of 14 facilities, including 10 plants, would produce [[ethylene glycol]], [[polyethylene]], and [[polypropylene]]. Construction was initially set to begin in 2019, with the initial opening date set for 2024 and the final stage of the development being completed by approximately 2029.<ref>{{Cite web|title=Formosa Investing $9.4B In Louisiana Manufacturing Complex|url=https://businessfacilities.com/2018/04/formosa-investing-9-4b-in-louisiana-manufacturing-complex/|date=April 24, 2018|website=Business Facilities}}</ref><ref name=":0">{{Cite web|title=Formosa Plastics plans $332M plant expansion in Baton Rouge|url=https://www.theadvocate.com/baton_rouge/news/business/article_5a44175a-c9a9-11e9-a49f-6794530f51bf.html|last=Mosbrucker|first=Kristen|date=August 28, 2019|website=The Advocate}}</ref> The [[Louisiana Department of Environmental Quality]] (LDEQ) approved the air permits for the project in January 2020.<ref>{{Cite web|title=Key air permits granted for $9.4B Formosa Plastics complex in St. James Parish; opponents promise fight|url=https://www.theadvocate.com/baton_rouge/news/communities/ascension/article_75ddf3ea-3174-11ea-9aa5-4f5045e8b4c0.html|last=Mitchell|first=David J.|date=January 7, 2020|website=The Advocate}}</ref>

In February 2020, [[Earthjustice]] filed a lawsuit to challenge LDEQ's approval of the air permits.<ref>{{Cite web|title=Lawsuit Appeals Permit for Formosa Plastics to Build in Louisiana's 'Cancer Alley'|url=https://www.ecowatch.com/formosa-plastics-plant-in-louisiana-2645172937.html|date=February 17, 2020|website=EcoWatch}}</ref><ref>{{Cite news|last=McConnaughey|first=Janet|date=February 14, 2020|title=Groups challenge Louisiana permits for plastics plant|work=Star Tribune|url=https://www.startribune.com/groups-challenge-louisiana-permits-for-plastics-plant/567883062/}}</ref> [[Sharon Lavigne]] and a number of other community activists also filed suit via their nonprofit, [[Rise St. James]], and helped stall the project as of June 2021. Lavigne won the 2021 [[Goldman Environmental Prize]] for her opposition toward Formosa's plans.

On September 14, 2022, District Judge Trudy White cancelled air quality permits for the new facility issued to Formosa by the LDEQ, effectively delaying the start of the project. Formosa announced they would appeal the ruling.<ref>{{cite news |url=https://apnews.com/article/health-louisiana-new-orleans-race-and-ethnicity-eae18fe044c76ef34765bb486f6b35ca |title=Louisiana judge tosses permits for $9.4B plastics complex |first=Janet |last=McConnaughey |date=September 15, 2022 |work=[[Associated Press]] |access-date=September 20, 2022}}</ref>

==== Texas ====
In May 2018, citing stronger demand in the co-polymer market, Formosa Plastics announced new expansions in polyethylene and polypropylene production plant technologies for its facility in Point Comfort, all licensed from [[ExxonMobil]], Univation Technologies, and Japan Polypropylene Corporation.<ref>{{Cite news|last=Detore|first=Don|date=7 May 2018|title=Formosa: PE, PP capacity expansions underway in Texas|work=Plastics News|url=https://www.plasticsnews.com/article/20180507/NEWS/180509915/formosa-pe-pp-capacity-expansions-underway-in-texas}}</ref> In August 2019, the first of two new polyethylene plants had begun operating.<ref>{{Cite news|last=Hays|first=Kristen|date=November 26, 2019|title=Formosa Plastics' Texas polyethylene plant operational, second plant to come online in December|work=[[S&P Global Platts]]|url=https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/112619-formosa-plastics-texas-polyethylene-plant-operational-second-plant-to-come-online-in-december}}</ref> The second plant and [[Cracking (chemistry)|cracker]] were scheduled to fully operate in December 2019, but their opening was delayed until at least April 2020, pending further updates.<ref name=":1">{{Cite web|title=Formosa Plastics delays start up of US cracker, LDPE unit|url=https://www.icis.com/explore/resources/news/2019/12/20/10454916/formosa-plastics-delays-start-up-of-us-cracker-ldpe-unit|last=Moore|first=Zachary|date=December 20, 2019|website=Independent Commodity Intelligence Services}}</ref><ref>{{Cite news|last=Pipoli|first=Renzo|date=January 29, 2020|title=PU: U.S. Gulf Coast polyethylene projects face start-up delays|work=Business & Industry Connection|url=https://www.bicmagazine.com/industry/refining-petchem/pu-u-s-gulf-coast-polyethylene-projects-face-start-up-delays/}}</ref> The new polypropylene plant is scheduled to begin operating in the third quarter of 2021.<ref name=":1" />

==== Baton Rouge ====
In August 2019, Formosa Plastics announced it was planning to invest in a US$332 million expansion at its Baton Rouge facility to expand production of PVC resin. Construction began later in the year and is expected to be completed by the fourth quarter of 2021.<ref name=":1" /> The expansion would allow the company to produce an additional 300 million pounds of resin. For the expansion, the company would receive a performance-based grant up to US$500,000 from the state of [[Louisiana]].<ref name=":0" /><ref>{{Cite web|title=Formosa Plastics announces $332 million expansion|url=https://www.plasticstoday.com/materials/formosa-plastics-announces-332-million-expansion/151578375761443|last=Goldsberry|first=Clare|date=August 30, 2019|website=Plastics Today}}</ref>

== Controversies ==

=== Pollution and waste violations ===
In 1999, Formosa Plastics used bribes to dump 3000 tons of [[Mercury (element)|mercury]]-laden waste in [[Sihanoukville (city)|Sihanoukville]], [[Cambodia]] – three local villagers died shortly afterwards, although a report commissioned by the [[World Health Organization]] concluded it was unlikely the deaths were due to mercury poisoning.<ref>{{cite news |last=Tempest |first= Rone|date=March 4, 1999 |title= Asia’s Toxic Formula for Waste|url=https://www.latimes.com/archives/la-xpm-1999-mar-04-mn-13867-story.html |work=Los Angeles Times |publisher=Los Angeles Times |quote=KAOHSIUNG, Taiwan — The nearly 3,000 tons of mercury-contaminated concrete originally came from a chemical plant here in the industrial southern tip of Taiwan. When it arrived in Cambodia in December and was dumped--with no warning labels--in a treeless, red-dirt field outside the port city of Sihanoukville, local villagers thought it might be some kind of international aid.[...]But elation turned to panic when a worker who had helped unload the cargo from a Taiwanese ship died after suffering intense headaches, dizziness and vomiting. A teenage villager died after sleeping on one of the plastic shipping bags.[...]In the Cambodia toxic-waste case, an embarrassed Taiwanese government fined Formosa Plastics Group for illegally exporting the waste from the company’s Jenwu plant here in Kaohsiung County, where the shipment originated in November.[...]The president of Formosa Plastics Corp., the main subsidiary of Taiwan’s largest industrial group and one of the world’s leading petrochemical companies, claims that the fault lies with his nation’s environmentally militant citizens. They forced the company to remove the waste, which he maintains is harmless, from a landfill in southern Taiwan where it had been legally placed after undergoing processing to reduce the danger of mercury poisoning.|access-date=February 24, 2025}}</ref><ref>{{cite news |author=<!-- not stated --> |date=December 4, 1999 |title=Return to Sihanoukville |url=https://www.taipeitimes.com/News/front/archives/1999/12/04/0000013504 |work= Taipei Times |publisher= Taipei Times|access-date=February 24, 2025|quote= ENVIRONMENT A year ago today, workers at the Cambodian port of Sihanoukville began unloading thousands of tonnes of highly toxic waste from the hold of the Taiwanese freighter Chang Sun. Within days, the mercury-tainted cargo, belonging to Taiwan's biggest conglomerate, the Formosa Plastics Group, ended its journey on a grassy plain outside of Sihanoukville. What followed was the beginning of a public relations fiasco for the Taiwanese company, health officials and the Cambodian government -- and a tragedy for local residents. Cambodia correspondents Phelim Kyne and Chea Sotheacheath return to Sihanoukville to find that fear, anger and questions about who was responsible for the waste dumping -- and its potential long-term health effects -- remain unresolved.}}</ref><ref>[http://www.albionmonitor.com/9902a/copyright/taiwanmercury.html Taiwan Used Bribes, Corruption to Dump Mercury Waste in Cambodia]</ref> The company later tried to ship the waste to a hazardous waste site in [[Nevada]].<ref>[http://www.reviewjournal.com/lvrj_home/2000/Mar-10-Fri-2000/news/13135898.html ReviewJournal"Nevada targeted for toxic sludge]</ref>

A 2002 survey undertaken by Scorecard, an environmental watch group, rated Formosa Plastics' facilities in the 90th percentile of the worst environmental polluters.<ref>{{Cite web |url=http://www.scorecard.org/env-releases/facility.tcl?tri_id=77978FRMSPPOBOX#major_chemical_releases |title=Scorecard |access-date=22 July 2009 |archive-date=23 November 2005 |archive-url=https://web.archive.org/web/20051123114907/http://scorecard.org/env-releases/facility.tcl?tri_id=77978FRMSPPOBOX#major_chemical_releases |url-status=dead }}</ref>

In 2009, the Taiwanese [[Environmental Protection Administration]] (EPA) found that the soil and the groundwater in the area close to Formosa Plastics' [[Renwu incident|Renwu plant]] had been polluted by [[benzene]], [[chloroform]], [[dichloromethane]], [[1,1,2-Trichloroethane]], [[1,1-dichloroethylene]], [[tetrachloroethylene]], [[trichloroethylene]], and [[vinylchloride]]. The pollutants were all present at levels over 20 times the government standard; and most frighteningly, the levels of 1,2-dichloroethane were 30,000 times higher than the standard.<ref>{{cite web|title=4. Soil & Groundwater 4-2 Formosa Plastics Renwu Plant to Be Announced Soil Pollution Remediation Site|url=http://www.epa.gov.tw/FileLink/FileHandler.ashx?file=13904|publisher=EPA}}</ref>

In September 2009, the [[United States Environmental Protection Agency]] announced that Formosa Plastics would spend more than US$10 million to address air, water, and hazardous waste violations from two of the company's plants in Point Comfort and Baton Rouge, after inspectors found leak detection and repair and waste violations at the facilities. Formosa Plastics also agreed to pay an additional civil penalty of US$2.8 million for numerous federal law violations.<ref>{{Cite news|date=September 29, 2009|title=Formosa Plastics Agrees to Resolve Multiple Environmental Violations at Plants in Texas and Louisiana|work=United States Environmental Protection Agency|url=https://archive.epa.gov/epapages/newsroom_archive/newsreleases/6aef3a2a3a324b11852576410053a31c.html}}</ref>

In April 2012, Formosa Plastics filed a US$1.3 million civil suit for a tort claim and a criminal suit for defamation against {{ill|Tsuang Ben-jei|zh|莊秉潔}}, a scientist who works at [[National Chung Hsing University]] in [[Taichung]], for presenting evidence of increased cancer risk in the vicinity of the Formosa Plastic Group hydrocarbon-processing facility in [[Mailiao]] at a scientific meeting and in a paper. More than 1,000 academics, including chemistry Nobel laureate [[Yuan T. Lee]], signed a letter of support for Tsuang. In September 2013, judges at Taipei District Court ruled against Formosa Plastics.<ref>[http://www.nature.com/news/taiwan-court-clears-academic-in-libel-suit-1.13685 Taiwan court clears academic in libel suit], Michele Catanzaro, Nature, 4 September 2013</ref>

In April 2016, Formosa Plastics was blamed by numerous protesters and media outlets for mass fish deaths in four provinces of [[Vietnam]] since 6 April. On 30 June 2016, the Vietnamese government officially concluded that the local Formosa Plastics affiliate steel plant was responsible for the marine ecological disaster. Formosa Plastics agreed to pay compensation of US$500 million and publicly apologized for the disaster.<ref>{{Cite web|title=It's Official: Formosa Subsidiary Caused Mass Fish Deaths in Vietnam|url=https://thediplomat.com/2016/07/its-official-formosa-subsidiary-caused-mass-fish-deaths-in-vietnam/|last=Diplomat|first=Shannon Tiezzi, The|access-date=2016-07-01}}</ref> Controversy grew over rumors that the apology was issued under coercion from the Vietnamese government.<ref>{{Cite web|title=Controversy shrouds Formosa Plastics' Vietnam fine|url=http://asia.nikkei.com/Business/AC/Controversy-shrouds-Formosa-Plastics-Vietnam-fine|date=2016-07-05|publisher=Nikkei Asian Review|access-date=2016-07-18|archive-date=10 July 2016|archive-url=https://web.archive.org/web/20160710134327/http://asia.nikkei.com/Business/AC/Controversy-shrouds-Formosa-Plastics-Vietnam-fine|url-status=dead}}</ref>

In July 2017, retired shrimper [[Diane Wilson]] sued Formosa Plastics in Federal court for up to US$184 million for damages relating to the company's noncompliance with state and federal environmental permits and laws that require companies to report all waste violations, particularly with the discharge of plastic pellets into [[Lavaca Bay]] and other waterways from the company's Point Comfort plant.<ref>{{Cite news|last=Anchondo|first=Carlos|date=March 25, 2019|title=Environmentalists take petrochemical giant Formosa to court over plastics pollution|work=The Texas Tribune|url=https://www.texastribune.org/2019/03/25/formosa-goes-to-federal-court-for-alleged-plastic-pollution/}}</ref>

In March 2019, the trial began and in June 2019, U.S. District Judge [[Kenneth M. Hoyt]] ruled against Formosa Plastics, noting the company's consistent violation of state-issued permits and federal laws.<ref>{{Cite news|last=Collier|first=Kiah|date=June 28, 2019|title=Federal judge rules against Formosa Plastics in pollution case, calling company a "serial offender"|work=The Texas Tribune|url=https://www.texastribune.org/2019/06/28/federal-judge-rules-lawsuit-formosa-plastics-texas-pollution-case/}}</ref> In October 2019, Formosa Plastics agreed to pay US$50 million over five years in a settlement to fund projects reversing water pollution damage in [[Calhoun County, Texas|Calhoun County]] and also comply with "zero discharge" of plastic pollutants in the future, making it the largest settlement of a [[Clean Water Act]] suit filed by private individuals.<ref>{{Cite news|last=Fernández|first=Stacy|date=October 15, 2019|title=Plastic company set to pay $50 million settlement in water pollution suit brought on by Texas residents|work=The Texas Tribune|url=https://www.texastribune.org/2019/10/15/formosa-plastics-pay-50-million-texas-clean-water-act-lawsuit/}}</ref> This controversy was portrayed in episode 12 ("Point Comfort") of the [[Netflix]] series [[Dirty Money (2018 TV series)|Dirty Money]] in 2020.

[[Plastic pollution]] continued in Lavaca Bay even after the court settlement.<ref>{{Cite news|last=Dermansky|first=Julie|date=January 18, 2020|title=Activists Find Evidence of Formosa Plant in Texas Still Releasing Plastic Pollution Despite $50 Million Settlement|work=The Texas Tribune|url=https://www.desmogblog.com/2020/01/18/diane-wilson-formosa-point-comfort-texas-plastic-pollution-settlement}}</ref>

=== Explosions ===
Formosa Plastics has been involved in a series of deadly explosions at their facilities. After an explosion in a Formosa Plastics [[polyvinyl chloride]] manufacturing facility plant in [[Illiopolis, Illinois]], that killed 5 workers and severely injured 3 in April 2004,<ref>{{cite journal |last1=Long |first1=Lisa A. |last2=Lay |first2=James |last3=Leskin |first3=Katherine |last4=McClure |first4=Randy |last5=Smith |first5=Allen |title=Vinyl chloride monomer explosion |journal=Process Safety Progress |date=March 2008 |volume=27 |issue=1 |pages=72–79 |doi=10.1002/prs.10233|s2cid=110009677 }}</ref> [[Occupational Safety and Health Administration|OSHA]] fined the company US$300,000 for violations.<ref>[http://ehstoday.com/news/ehs_imp_37570/ Ehstoday:After Five Fatalities, OSHA Fines Formosa Plastics $300,000]</ref> In 2005, an [[Formosa Plastics propylene explosion|explosion at the Point Comfort plant]] hurt 11 workers.<ref>[http://www.commondreams.org/headlines05/1007-09.htm 11 Hurt in Plastics Plant Explosion] {{webarchive|url=https://web.archive.org/web/20110605071256/http://www.commondreams.org/headlines05/1007-09.htm|date=5 June 2011|title=}}</ref>

== See also ==
* [[List of companies of Taiwan]]
* [[Formosa Plastics Group Museum]]
* [[2016 Vietnam fish kill]]
* [[Formosa Ha Tinh Steel]]

== References ==
{{Reflist}}

== External links ==
{{Commons category|Formosa Plastics Group}}
*[http://www.fpc.com.tw/fpcw/ Company website]
*[http://www.fpcusa.com/ Company website for Formosa Plastics Corp., USA]
*[http://www.fpg.com.tw/html/fpg_cultural/history/history_eng.htm FPG official chronology]
{{FTSE TWSE Taiwan 50}}
{{S&P Asia 50}}

[[Category:Formosa Plastics Group]]
[[Category:Plastics companies of Taiwan]]
[[Category:Chemical companies established in 1954]]
[[Category:Companies listed on the Taiwan Stock Exchange]]
[[Category:Companies in the S&P Asia 50]]
[[Category:Taiwanese brands]]
[[Category:1954 establishments in Taiwan]]