TAIPEI (Taiwan News) — Formosa Plastics Group President Wu Chia-chau (吳嘉昭) said Saturday that transformation has become an urgent strategy for the conglomerate as it confronts mounting challenges from China’s industrial overcapacity and weakening global demand.
Wu said FPG is advancing five major transformations to enhance competitiveness and ensure long-term growth. The initiatives cover product, business, low-carbon, energy, and digital transformation, according to CTEE.
The group operates more than 100 affiliated companies, including Formosa Plastics, Nan Ya Plastics, Formosa Chemicals and Fiber, and Formosa Petrochemical. It remains Taiwan’s largest petrochemical conglomerate and one of Asia’s leading producers of polyvinyl chloride
However, FPG has been hit hard by China’s capacity expansion, which has caused supply-demand imbalances across the global petrochemical industry. While Taiwan’s benchmark stock index rose 58% over the past five years, the combined market capitalization of FPG’s four flagship companies lost nearly 60%, falling below levels seen during the 2009 financial crisis, marking a 15-year low.
Wu acknowledged the difficulties, noting that Chinese overcapacity has distorted market dynamics and that the fourth quarter will remain challenging. He said the group expects conditions to improve next year as global trade stabilizes, though a full recovery may not occur until 2027.
Despite the broader headwinds, Wu said the group’s electronic materials business has shown strong momentum and made a meaningful contribution to overall operations.
He emphasized that transformation must involve the entire organization. Each division is now required to report progress and propose new initiatives every three months.
FPG Executive Director Wang Wen-yuan (王文淵) echoed this view in an interview with Business Next earlier this year, saying that transformation is a path every enterprise must take. In August last year, Wang ordered the establishment of a corporate transformation task force after multiple high-level meetings among the group’s management and its four core companies.
Wang has framed digitalization and sustainability as central to its next phase of growth. Artificial intelligence is indispensable on the road to sustainable development, Wang noted, adding that successful adoption requires a top-down approach to ensure effectiveness across the organization.
The most tangible results so far have come from product transformation, including production line optimization, efficiency improvements, and the development of high-tech, high-performance materials.
