Formosa Plastics “Four Treasures” (Formosa Plastics, Formosa Chemicals & Fibre, Nan Ya Plastics, and Formosa Petrochemical Corp.) announced a significant investment initiative today to fortify its position in the green industrial sector. The conglomerate disclosed a total capital increase of 10 billion yuan aimed at advancing its energy storage systems business and reinforcing its green energy commitments.
The strategic financial infusion will support the expansion of the “Formosa Plastics New Intelligence” subsidiary, which was established in July 2022 with an initial investment of NT$16 billion. The subsidiary is dedicated to constructing and operating Taiwan’s largest battery cell production facility located in the Changhua Industrial Zone.
In this ambitious expansion, Formosa Plastics and its allied companies, Nan Ya and Formosa Chemicals & Fibre, will each contribute to the financing. Formosa Plastics and Nan Ya are each set to increase their investments by NT$2.5 billion, maintaining a 25% shareholding, while Formosa Chemicals & Fibre will boost its contribution by NT$2 billion to secure a 20% stake.
This influx of capital will enable the first phase of production at the Changbin plant to commence in July, with a projected annual capacity of 2.1 GWh. The second phase of the expansion is slated for 2025 and is expected to increase total production capacity to 5 GWh. These expansions will not only augment battery cell and module factory capacities but also facilitate the establishment of battery recycling mechanisms.
The Formosa Plastics Group’s decision to deepen its investment in renewable energy is aligned with its vision to build a comprehensive industrial chain and expand its footprint in the green energy storage market. This move is poised to accelerate the localization of battery cell and module production, enhancing the sustainability and resilience of Taiwan’s energy sector.
As Formosa Plastics continues to drive forward with its green initiatives, the group solidifies its role as a key player in the global transition towards sustainable energy solutions.
