Formosa Chemicals Invests Over NT$300 Million in Equipment Procurement! Related-Party Transaction Details Revealed, Remaining NT$120 Million Awaiting Board Approval

Formosa Chemicals & Fibers (6505) today (24th) disclosed a related-party transaction, revealing that between September 25 last year and September 24 this year, it procured multiple production machinery and related engineering services from Taisung Machinery due to operational needs, with a cumulative transaction value of approximately NT$306 million.

As Taisung Machinery is a related party of Formosa Chemicals, the company held a major information press conference this afternoon to publicly explain the content of this equipment procurement and its subsequent approval process.

Over NT$241 million allocated for ground flare and heat exchangers

Regarding the details of the transaction, Tsai Chien-tang, Deputy General Manager and Acting Spokesperson of Formosa Chemicals, stated that the procurement was primarily driven by business requirements. The purchase of key equipment such as ground flares and heat exchangers amounts to approximately NT$241 million, constituting the majority of the total transaction value.

In addition to these main items, Formosa Chemicals also procured other miscellaneous equipment and engineering services from Taisung Machinery, amounting to approximately NT$65.53 million. Combined, both portions total around NT$306 million.

NT$186 million already approved; remaining NT$120 million to be reviewed in November

However, not all of the NT$306 million transaction has completed internal corporate approval procedures. Tsai indicated that approximately NT$186 million has already received resolutions from the Audit Committee and the Board of Directors. The remaining NT$120 million is scheduled to be submitted for discussion at the next Audit Committee and Board meeting on November 5, after which relevant procedures will be finalized before implementation.