Omar Khalid
Founded in 1954, Formosa Plastics is a plastics and petrochemicals company that has diversified into electronics, cosmetics, hospitals, and car manufacturing. The company was established by Y. C. Wang, who expanded the company into a global empire. Formosa Plastics is affiliated with the Taiwan-based Formosa Plastics Group (FPG), which has annual revenues of over $74 billion and 103,000 employees worldwide. The company has been involved in several environmental controversies, including incidents of toxic pollution and illegal waste dumping. Despite these issues, Formosa Plastics remains a significant player in the plastics and petrochemicals industry, with a presence in the United States and Asia.
| Characteristics | Values |
|---|---|
| Founder | Y. C. Wang |
| Year founded | 1954 |
| Headquarters | Livingston, New Jersey |
| Core business | Plastic resins and petrochemicals |
| Number of employees | 2,400-3,000 |
| Annual revenue | $5 billion |
| Parent company | Taiwan-based Formosa Plastics Group (FPG) |
| FPG's annual revenue | $74 billion |
| FPG's number of employees | 103,000 |
| FPG's subsidiaries | Formosa Automobile Corp, Formosa Plastics Corp, Nan Ya Plastics Corp, Formosa Hydrocarbons Company, Lavaca Pipe Line Company, Neumin Production Company |
| FPG's industries | Petrochemicals, plastics, textiles, electronics, medicine, skincare, automobile manufacturing, gasoline retail, petroleum refining |
| FPG's factories | 40+ in mainland China, 1 in Zhuangzhou, Fujian Province |
| FPG's oil refinery capacity | 450,000 barrels (72,000 m3) per day |
| FPG's naphtha cracking plant production capacity | 1.35 million tons ethylene per year |
| FPG's wind power plant capacity | 2,640 kW |
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What You'll Learn
Y. C. Wang founded Formosa Plastics in 1954
Y.C. Wang founded Formosa Plastics in 1954. Wang, who had only an elementary school education, first worked as a rice delivery boy before opening a rice shop with money borrowed from his father. He then moved from retailing to milling and built a bigger mill after World War II. Wang made his first fortune in the timber industry, and with $500,000 from this business and a loan from an American economic aid programme, he licensed Japanese plastics technology and founded Formosa Plastics.
Formosa Plastics was originally the world's smallest PVC production facility, but it has since grown into a worldwide organisation with annual revenues of more than $74 billion and over 103,000 employees. The company has subsidiaries in the United States and China, with PVC factories and chemical production facilities in both countries.
Formosa Plastics has been at the centre of several controversies. In 1998, the company was accused of dumping 3,000 tons of mercury-contaminated waste near Sihanoukville, Cambodia. In 2016, the company was blamed for mass fish deaths in four provinces of Vietnam, and in 2017, it was sued by retired shrimper Diane Wilson for non-compliance with state and federal environmental permits.
Despite these controversies, Y.C. Wang is remembered for his business acumen and his contribution to Taiwan's economic development. He is known as the "'God of Management'" and is credited with expanding Formosa Plastics into a diverse range of industries, including electronics, cosmetics, hospitals, and car manufacturing. Wang passed away in 2008 at the age of 91, leaving behind a multibillion-dollar family fortune.
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The company has been involved in several environmental controversies
The company Formosa Plastics has been involved in several environmental controversies. In 1999, the company bribed officials to dump 3,000 tons of mercury-laden waste in Sihanoukville, Cambodia, resulting in the deaths of three local villagers. A 2002 survey by Scorecard, an environmental watch group, ranked Formosa Plastics among the worst environmental polluters.
In 2009, the Taiwanese Environmental Protection Administration (EPA) found that the soil and groundwater near Formosa Plastics' Renwu plant were polluted with several toxic chemicals, including benzene, chloroform, and vinyl chloride, at levels exceeding government standards. The company was also found to have violated air, water, and hazardous waste regulations in 2016, leading to a $10 million fine and a $2.8 million civil penalty.
Formosa Plastics has also faced criticism for its proposed "Sunshine Project" in St. James Parish, Louisiana, an area known as "Cancer Alley" due to the high levels of environmental pollutants. The project involves the construction of a $9.4 billion chemical manufacturing complex, which would significantly increase air and water pollution and contribute to greenhouse gas emissions. Community activists and environmental organisations have opposed the project, citing its potential detrimental impact on the predominantly Black community in the area.
In addition, Formosa Plastics has been blamed for mass fish deaths in Vietnam in 2016, resulting in a $500 million compensation payout. The company has also faced allegations of human rights abuses, labour violations, and environmental racism, impacting communities in Vietnam, Taiwan, and the United States.
A 2022 report by the Center for International Environmental Law (CIEL) and other organisations further exposed Formosa Plastics' track record of environmental, health, safety, and labour violations. The report highlighted the company's systemic environmental violations and raised concerns about its sustainability practices and alignment with international standards.
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It is a vertically integrated supplier of plastic resins and petrochemicals
The Formosa Plastics Corporation, U.S.A. (Formosa Plastics) is a vertically integrated supplier of plastic resins and petrochemicals. It was founded in 1978 as a wholly owned subsidiary of the Taiwan-based Formosa Plastics Group (FPG). FPG, founded in 1954, has grown from the world's smallest PVC production facility into a global leader in petrochemicals, plastics, and other industries. It has annual revenues of over $74 billion and employs more than 103,000 people.
Formosa Plastics, headquartered in Livingston, New Jersey, has annual revenues exceeding $5 billion and employs over 2,400 people operating 20 production units across six business divisions: Olefins, Polyolefins, Vinyl, Specialty Polyvinyl Chloride, Chlor-Alkali, and Oil & Gas. The company's core business of producing plastic resins and petrochemicals is conducted through wholly-owned chemical manufacturing subsidiaries in Baton Rouge, Louisiana, and Point Comfort, Texas.
The Point Comfort, Texas site, established in 1983, covers nearly 2,500 acres and consists of sixteen production units and various support facilities. Over the years, Formosa Plastics has invested heavily in expanding and modernizing its production facilities and supply systems, resulting in a manufacturing base that is among the newest and most efficient in the industry.
Formosa Plastics differentiates itself in the marketplace through the extensive vertical integration of its supply chain. The company produces oil and gas through its subsidiary, Neumin Production Company, and transports these raw materials through another subsidiary, the Lavaca Pipe Line Company. Natural gas is processed into its components through the Formosa Hydrocarbons Company subsidiary. Additionally, Formosa Plastics delivers many of its products to customers using its own fleet of modern railcars.
Formosa Plastics' commitment to quality and sustainability is evident in its investments in new product development, quality control systems, and energy-efficient production facilities. The company has received the EPA's Energy Star certification for its headquarters, reflecting its dedication to renewable energy and energy efficiency. Despite its focus on vertical integration and growth, the company has faced significant environmental controversies, including incidents of toxic pollution and non-compliance with environmental permits.
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The company has expanded to the US and China
The Taiwanese plastics company Formosa Plastics Corporation (FPC) was founded in 1954 by brothers Wang Yung-ching and Wang Yung-tsai. It is the central corporation of the Formosa Plastics Group (FPG) and is currently headed by Jason Lin.
FPC has expanded its operations to the US and China. In 1978, the company founded its first subsidiary in the US, Formosa Plastics Corporation, USA, which has since created four wholly owned chemical manufacturing subsidiaries in Delaware City, Delaware, Illiopolis, Illinois, Baton Rouge, Louisiana, and Point Comfort, Texas. In 1988, FPC constructed an ethylene plant in Point Comfort, Texas, which is part of the company's American holdings, including Texas properties containing over 200 oil wells and lands rich in natural gas. In April 2018, FPC announced a $9.4 billion chemical manufacturing complex in St. James Parish, Louisiana, which would produce ethylene glycol, polyethylene, and polypropylene. In 2019, FPC also announced a $332 million expansion of its PVC unit in Baton Rouge, which would increase production capacity and sales, as well as create new jobs.
In China, FPC has constructed a power plant in Zhuangzhou, Fujian Province, and built at least 40 factories across the country. The company's expansion into China began in 1989 when Chairman Wang Yung-ching travelled to the mainland to find a solution for a stalled project in Taiwan. In 1990, he announced his intention to develop a complex in the People's Republic of China-controlled island of Haitsang, Fujian Province. Despite condemnation from the Nationalist government, the project went ahead and has since become an important part of FPG's overseas expansion.
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It is headquartered in Livingston, New Jersey
The Formosa Plastics Corporation, U.S.A. (Formosa Plastics) is headquartered in Livingston, New Jersey. The company was founded in 1978 as a wholly owned subsidiary of the Taiwan-based Formosa Plastics Group (FPG). FPG was founded in 1954 and has since become a global leader in petrochemicals, plastics and many other industries. With annual revenues of more than $5 billion, Formosa Plastics Corporation employs over 3,000 people across 20 production units in five business divisions: Olefins, Polyolefins, Vinyl, Specialty Polyvinyl Chloride, and Chlor-Alkali.
The company's core business, producing plastic resins and petrochemicals, takes place at three wholly-owned chemical manufacturing subsidiaries located in Delaware City, Delaware, Baton Rouge, Louisiana, and Point Comfort, Texas. The Point Comfort, Texas site, for example, consists of sixteen production units and a variety of support facilities across a nearly 2,500-acre petrochemical complex.
Formosa Plastics Corporation has invested heavily in its production facilities and product supply systems, focusing on vertical integration and consistent product quality. The company has also diversified into other fields, such as oil and gas production through its subsidiary Neumin Production Company, and the transportation of raw materials through its subsidiary Lavaca Pipe Line Company.
The Livingston, New Jersey-based company has not been without its controversies, however. In 1998, Formosa Plastics was accused of dumping 3,000 tons of mercury-contaminated waste near Sihanoukville, Cambodia, causing widespread panic and protests. In 2016, the company was again at the centre of an environmental scandal, this time in Vietnam, where a discharge of toxic pollution from one of its steel complexes resulted in the deaths of an estimated 115 tons of fish and negatively impacted the livelihoods of 200,000 people.
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Frequently asked questions
Ken Mounger is the Executive Vice President of Formosa Plastics, USA.
Y. C. Wang was the founder and previous owner of Formosa Plastics. Wang passed away in 2008 at the age of 91.
It is not known who will be the next owner of Formosa Plastics. After Wang's death in 2006, he assigned seven senior managers to collectively oversee operations.
