Formosa Petrochemical Increases Taiwan Synthetic Rubber Stake to 6.53%

Formosa Petrochemical Corporation (6505) announced it acquired 12,716 shares of Taiwan Synthetic Rubber Corporation stock from August 13 to November 6 at 26.22 TWD per unit, totaling 333 million TWD in transaction value. The acquisition increased Formosa Petrochemical's cumulative holdings to 53,917 shares worth 1.493 billion TWD, raising its ownership stake from 4.99% to 6.53%. The company stated the investment aims to strengthen connections with downstream manufacturers in niche applications, specifically in four-carbon, five-carbon, and rubber sectors where it has limited operational presence and collaboration. Formosa Petrochemical emphasized it has no intention to compete for Taiwan Synthetic Rubber's management control, characterizing the share purchases as preliminary investment to explore potential niche cooperation projects between the two companies.

Formosa Petrochemical Acquires 12,716 Taiwan Synthetic Rubber Shares

Formosa Petrochemical's announcement detailed the transaction parameters for its Taiwan Synthetic Rubber share acquisition. The company purchased 12,716 shares at a per-unit price of 26.22 TWD during the period from August 13 to November 6, resulting in a total transaction value of 333 million TWD. Following this acquisition, Formosa Petrochemical's cumulative position in Taiwan Synthetic Rubber reached 53,917 shares with a total investment value of 1.493 billion TWD. The ownership percentage increased from 4.99% to 6.53% as a result of these purchases.

Company Targets Downstream Niche Connections in Four-Carbon and Rubber Sectors

Formosa Petrochemical stated its operations have limited cultivation and connections in four-carbon and five-carbon downstream applications, and lack collaboration in rubber-related sectors. The company indicated it has previously sought opportunities to purchase Taiwan Synthetic Rubber shares at favorable prices to strengthen connections with downstream manufacturers in niche applications. Both companies maintain a positive outlook toward seeking cooperation projects and information exchange.

Formosa Petrochemical Denies Intent to Pursue Taiwan Synthetic Rubber Management Control

Formosa Petrochemical emphasized it has no intention to participate in Taiwan Synthetic Rubber's management control. The company characterized its share purchases as preliminary investment purely for exploring niche cooperation projects between the two entities. Formosa Petrochemical stated that if suitable niche projects emerge in the future, it does not rule out joint cooperation or investment, and may expand its investment and shareholding in Taiwan Synthetic Rubber at that time.

Formosa Petrochemical Advances Sustainable Aviation Fuel and Ethane Projects

Formosa Petrochemical has continued advancing its niche transformation initiatives in recent years. The company partnered with Macquarie and Toyota Tsusho to establish wind power generation with six 4.2MW turbines. It also formed a joint venture with US-based Kraton to build a 40,000-ton-per-year HSBC plant developing medical-grade products including IV bags, marking the company's first high-value product initiative.

Formosa Petrochemical's sustainable aviation fuel (SAF) production capacity reached 6,500 tons this year, with a medium-to-long-term target of 50,000 tons annually. The company's ethane feedstock equipment adjustments will complete by year-end, with operations commencing next year. Initial planning calls for purchasing 300,000 tons of ethane annually, which will reduce costs by 150 to 200 USD per ton and strengthen operational flexibility and competitiveness.

Formosa Petrochemical is collaborating with Formosa Plastics to develop atomic layer deposition ruthenium metal precursors and other key materials. The company is also partnering with Formosa Plastics, Formosa Chemicals, and China Synthetic Rubber to expand into electronic-grade sulfuric acid business. Phase one production capacity is scheduled to complete and commence operations in December 2028, with phase two completing in December 2029.

FAQ

What did Formosa Petrochemical acquire from August 13 to November 6?

Formosa Petrochemical acquired 12,716 shares of Taiwan Synthetic Rubber Corporation stock at 26.22 TWD per unit, totaling 333 million TWD in transaction value. This increased the company's cumulative holdings to 53,917 shares worth 1.493 billion TWD, raising its ownership stake from 4.99% to 6.53%.

Why did Formosa Petrochemical increase its stake in Taiwan Synthetic Rubber?

Formosa Petrochemical stated the investment aims to strengthen connections with downstream manufacturers in niche applications. The company has limited operational presence and collaboration in four-carbon, five-carbon, and rubber sectors, and views the share purchases as preliminary investment to explore potential niche cooperation projects with Taiwan Synthetic Rubber.

Does Formosa Petrochemical intend to pursue management control of Taiwan Synthetic Rubber?

Formosa Petrochemical explicitly stated it has no intention to participate in Taiwan Synthetic Rubber's management control. The company characterized the share purchases as preliminary investment purely for exploring niche cooperation projects, though it does not rule out expanding investment if suitable joint projects emerge in the future.