Why is Taiwan Styrene halting its styrene plant?

Due to weak demand, overcapacity, falling prices, and four consecutive years of losses.

When was this decision announced?

It was approved and announced on July 24, 2026, after board and audit committee meetings.

What impact will this have on revenue?

The plant accounts for 97% of revenue, so short-term decline is inevitable, but it's a long-term restructuring move.

Taiwan Styrene Monomer Corporation to Halt Styrene Plant Operations to Address Continuous Losses and Improve Performance

Published Jul 24, 2026 9:00 AM ・ Updated Jul 26, 2026 1:47 PM ・ 4 min read ・ Source: PR Times

Due to five consecutive years of weak petrochemical market conditions, overcapacity, and four consecutive years of losses, Taiwan Styrene Monomer Corporation plans to cease operations at its styrene plant to preserve capital for future transformation and long-term planning.

1. Date of Event: July 24, 2026

2. Reason for Announcement:

a) Over the past five years, the overall petrochemical market has remained sluggish with insufficient demand momentum and intensified competition among peers. Production capacity has been severely oversupplied, leading to declining product prices and continuously rising costs. The company’s operational performance has not improved, resulting in four consecutive years of losses, significantly impacting profitability and financial health.

b) In response to ongoing operating losses, the company will reduce cash outflows and retain capital for future transformation and long-term strategic planning to enhance shareholder value.

3. Comparison of Production Capacity (Past Three Years and Post-Reduction): 2023: 350,000 tons 2024: 350,000 tons 2025: 350,000 tons

4. Comparison of Production Volume (Past Three Years and Post-Reduction): 2023: 270,000 tons 2024: 290,000 tons 2025: 280,000 tons

5. Production Capacity of Fully or Partially Suspended Project: 350,000 tons

6. Production Volume of Fully or Partially Suspended Project: 3,000 tons

7. Revenue Contribution of Suspended Project: 97%

8. Details of Leased Factory Buildings or Major Equipment: Not applicable

9. Leased Assets as Percentage of Total Assets: Not applicable

10. Details of Pledged Assets: Land valued at NT$810 million, Buildings valued at NT$230 million

11. Pledged Assets as Percentage of Total Assets: 13.5%

12. Decision Process: Approved by the Audit Committee on July 24, 2026, and subsequently resolved by the Board of Directors on the same day, followed by public announcement.

13. Other Matters to be Disclosed: None. (As a publicly listed company, this material information does not currently meet the criteria under Article 7, Paragraph 3, Item 3 of the Enforcement Rules of the Securities and Exchange Act regarding matters significantly affecting shareholders’ rights or securities prices.)

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Source: PR Times
Category: News

Taiwan Styrene Monomer Corporation to Halt Styrene Plant Operations to Address Continuous Losses and Improve Performance

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