Formosa Chemicals Invests NT$306 Million in Production Machinery from Taishin Heavy Industries to Meet Operational Needs

Formosa Chemicals (6505-TW) held a material information briefing at the Taiwan Stock Exchange this afternoon (24th), with Deputy General Manager and Acting Spokesperson Tsai Chien-tang providing details. Tsai stated that Formosa Chemicals has purchased production machinery and equipment from Taishin Heavy Industries from September 25, 2025, to September 24, 2026, to meet operational needs, with a total transaction value of approximately NT$306 million.

Tsai explained that the purchase of equipment from the related party, Taishin Heavy Industries, was necessary for Formosa Chemicals' operations. The main equipment acquired includes ground flare towers and heat exchangers, amounting to approximately NT$241 million, along with other miscellaneous equipment and engineering costs totaling about NT$65.53 million.

Regarding the asset acquisition amount, Tsai noted that of the total NT$306.889 million, NT$186.151 million has already been approved by the Audit Committee and Board of Directors, while the remaining NT$120.738 million will be submitted for discussion and approval at the Audit Committee and Board of Directors meeting scheduled for November 5, 2026.

The counterparty in this transaction is Taishin Heavy Industries Co., Ltd., a company in which Formosa Chemicals holds a 1.26% equity stake.

Taishin Heavy Industries' products and services include cogeneration plants and power generation equipment, automated warehouses, refining and petrochemical process equipment, heavy transport and lifting, gear reducers and large precision gears, industrial rollers, linings, and metal roller plating, grinding, and electrolytic polishing. It is a major mechanical equipment manufacturer and turnkey plant provider in Taiwan.