Formosa Plastics Company

Formosa Plastics Corp., U.S.A., is the prince of PVC. Affiliated with Taiwan's Formosa Plastics Corporation, one of the world's largest PVC (polyvinyl chloride) suppliers, the company produces all manner of petrochemicals and plastic resins. Its product roster includes polyethylene, polypropylene, vinyl, and chlor alkali products like caustic soda. It also produces suspension and specialty PVC resins, the former for pipe and fencing, the latter for flooring and insect screening. Other Formosa products are used for packaging and chemical processing. The fully vertically integrated company operates three manufacturing locations that are fed raw materials by oil and gas-producing and transportation subsidiaries. The company operates through six business divisions: Chor-Alkali, Oil & Gas, Olefins, Polyolefins, Specialty Polyvinyl Chloride, and Vinyls. Formosa Plastics markets its polyethylene and polypropylene resins under the Formolene trade name; its polyvinyl chloride resins are marketed under the Formolon brand. Its strategy is to differentiate itself in the marketplace through an extensive vertical integration of its supply chain operations. Through its Neumin Production Co. subsidiary, it produces oil and gas and then transports these raw materials through its natual gas pipeline, Lavaca Pipe Line Co. Formosa Plastics then processes natural gas into its components through subsidiary Formosa Hydrocarbons Co. It also distributes products to many of its customers through its fleet of railcars. Formosa Plastics, which makes more than $4 billion per year, invests in expanding its production plants and product supply systems. It boasts of having one of the most efficient and newest manufacturing bases, and each of its plants has advanced computerized process control systems and state-of-the-art control laboratories. In 2011 the company started up a new power plant in Point Comfort, Texas, that has the capacity to generate 300 MW of electricity to supply its Texas complex. The company's plants in the US have operated at full capacity and have not been affected by difficulties encountered by its affiliates in Taiwan, which experienced fires at the company's Mailiao petrochemical complex.